What did Dell Technologies (NYSE:DELL) report in Q1 fiscal 2027?

Dell Technologies reported first-quarter revenue of $43.84 billion, up 88% year over year and well above analyst expectations of $35.43 billion. Strong demand for Nvidia-powered AI servers drove the surge, prompting a nearly 40% premarket jump in its stock price.

How did AI server demand impact Dell Technologies (NYSE:DELL)?

AI-optimized server sales are now projected at $60 billion for fiscal 2027, up from the previous target of $50 billion. Robust demand from cloud giants like Alphabet and Amazon.com has positioned Dell as a major beneficiary of increased data center AI investments.

How did Dell Technologies (NYSE:DELL) revise its full-year guidance?

The company raised its annual revenue guidance to $165–$169 billion, compared to prior guidance of $138–$142 billion. The profit outlook was also increased in response to higher AI server sales and improved operational efficiency.

What drove Dell Technologies’ (NYSE:DELL) stock performance?

Shares surged nearly 40% in premarket trading, reflecting strong Q1 results, raised guidance, and investor optimism over the AI server growth story. Analysts also upgraded target prices, with 19 of 28 recommending a “Buy” or higher.

How is Dell Technologies (NYSE:DELL) benefiting from market trends?

Corporate spending is increasingly shifting from software applications to core AI infrastructure. Dell’s exposure to high-demand, Nvidia-powered AI servers allows it to capture a structural increase in enterprise and cloud data center investment.

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Dell surges 40% as blockbuster AI server demand triggers forecast upgrades

Written by Liezl GambePublished May. 29 2026Last Updated May. 29 2026

Shares of Dell Technologies (NYSE:DELL) soared nearly 40% in premarket trading on Friday after robust demand for its Nvidia-powered artificial intelligence servers prompted the hardware giant to sharply raise its annual revenue and profit forecasts.

The Texas-based enterprise infrastructure supplier is on track to add more than $81 billion to its market capitalization if the gains hold into regular trading, with shares hitting $442.70.

The explosive growth underscores Dell’s emerging position as a primary beneficiary of massive data center investments by cloud giants including Alphabet and Amazon.com.

Financial gains have also been bolstered by targeted price increases and improved efficiency across its global supply chain management.

Late Thursday, Dell raised its annual revenue projection to a range of $165 billion to $169 billion, a substantial leap from its prior guidance of $138 billion to $142 billion.

The company now expects AI-optimized server sales alone to reach approximately $60 billion in fiscal 2027, up from a previous target of $50 billion.

Wall Street responded with a wave of target price upgrades, as at least three brokerages lifted their valuation metrics immediately following the blowout results.

Morgan Stanley analysts described the performance as "across the board one of the most impressive quarters we've seen in our time covering Hardware, especially in the context of what is happening across the component universe."

According to data compiled by LSEG, the stock maintains a median target price of $236.50, with 19 of the 28 covering analysts rating the company a "Buy" or higher.

The results highlight a broader structural shift in corporate spending, which is increasingly migrating away from software applications and directly toward core physical AI infrastructure.

Dell's stock has more than doubled in value so far this year, significantly outperforming the benchmark S&P 500 Index's 10.5% advance.

The blockbuster update triggered a sympathetic rally across the broader AI hardware sector, lifting key competitors in early trading.

Shares of Super Micro Computer rose 10.7%, while Hewlett Packard advanced 23.5% following the announcement.

For the fiscal first quarter, Dell reported an 88% surge in total revenue to $43.84 billion.

The final figure handily beat the LSEG-compiled average analyst consensus estimate, which had anticipated revenue of $35.43 billion.