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Dell Stock Surges Over 30% on Explosive AI Earnings Beat and Raised Guidance

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Dell Cuts Its Workforce as Part of Broader Initiative to Reduce Costs After Sluggish Demand in PC Market

NEW YORK — Dell Technologies Inc. shares skyrocketed more than 30% in early trading Friday after the company reported blockbuster first-quarter results driven by surging demand for AI servers, a massive backlog and a sharply raised full-year outlook that exceeded Wall Street expectations.

Dell shares opened at $414.63, up $96.39 or 30.29% from Thursday’s close, as investors cheered the company’s accelerating position in the artificial intelligence infrastructure boom. The rally pushed the stock to new all-time highs and added tens of billions to its market capitalization in a single session.

Dell reported fiscal first-quarter 2027 revenue of $43.8 billion, an 88% increase from the prior year and far above consensus estimates around $35 billion. Adjusted earnings per share reached $4.86, crushing forecasts near $2.96. AI server sales alone hit $16.1 billion in the quarter, representing a 757% year-over-year surge.

The company exited the quarter with a record AI order backlog of $51.3 billion and raised its full-year fiscal 2027 guidance significantly. Dell now sees revenue between $165 billion and $169 billion and adjusted EPS around $17.90 at the midpoint, reflecting strong momentum in its AI business.

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CFO David Kennedy highlighted the broad-based nature of the growth. The performance underscores Dell’s successful pivot toward high-margin AI infrastructure, building on partnerships with Nvidia and others while expanding its enterprise AI offerings.

The earnings beat comes on the heels of several positive developments. Earlier this week, the U.S. Department of Defense awarded Dell a five-year, $9.69 billion contract to consolidate Microsoft software licensing, cloud subscriptions and on-premises services across military branches, intelligence agencies and the Coast Guard. The deal is expected to generate substantial annual savings for the Pentagon.

Additionally, data center operator IREN agreed to purchase $1.6 billion worth of Nvidia-powered Blackwell systems from Dell, further validating demand for its AI hardware solutions.

Analysts have responded enthusiastically. Several firms raised price targets ahead of the report, with some now exceeding $350 per share. The combination of the Pentagon win, major customer orders and robust earnings has created strong momentum for the stock.

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Dell’s performance reflects the broader AI infrastructure boom reshaping the technology sector. As enterprises and governments race to build out computing capacity for artificial intelligence workloads, companies like Dell that provide servers, storage and integrated solutions are seeing explosive order growth.

Michael Dell and the company’s leadership have positioned Dell Technologies as a key player in what they describe as a multi-year secular shift. The firm’s AI Factory platform and agentic AI capabilities are gaining traction, with thousands of customers already deploying the technology.

This marks another strong quarter in a multi-year run for Dell. The company has consistently beaten expectations as AI spending accelerates beyond initial hyperscaler deployments into broader enterprise adoption. Fiscal 2026 saw AI orders top $64 billion with shipments exceeding $25 billion, setting the stage for continued expansion.

Investors appear confident that Dell can sustain this trajectory. The raised guidance implies roughly 100% growth in AI-related revenue for the full year, signaling management’s conviction in the demand pipeline.

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The stock’s reaction underscores how sensitive technology investors have become to AI-exposed names. Similar moves have been seen in other hardware and infrastructure providers when they deliver outsized results tied to artificial intelligence.

However, some analysts caution that valuation multiples have expanded rapidly. Even after today’s surge, questions remain about sustainability if AI spending were to moderate or face delays. Supply chain constraints for advanced chips and competition from other server makers could also present challenges.

Dell has worked to differentiate itself through integrated offerings that combine hardware, software and services. Its relationships with major cloud providers and technology partners have helped broaden its addressable market.

From a balance sheet perspective, the company continues to generate strong cash flow. It returned $2.4 billion to shareholders in the first quarter through dividends and share repurchases, demonstrating confidence in its growth prospects.

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The rally in Dell shares also lifted related names. Peers in the server and data center space saw gains in sympathy, while Nvidia and other semiconductor stocks traded mixed amid the broader market’s focus on individual company results.

Wall Street’s response has been largely positive. The earnings report validates the thesis that enterprise AI spending is accelerating and that Dell is well-positioned to capture a significant share.

Looking ahead, management will provide more color on the conference call scheduled for later Friday. Investors will listen closely for commentary on backlog conversion rates, gross margins and any updates on competitive dynamics.

Dell’s transformation from a traditional PC and hardware company to an AI infrastructure leader has been years in the making. The current cycle appears to be hitting an inflection point, with multiple quarters of accelerating growth now on record.

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For long-term investors, today’s move reinforces Dell’s role in the AI buildout. The company’s diversified portfolio — spanning client solutions, infrastructure and services — provides some buffer against sector-specific volatility.

Short-term traders, however, may watch for profit-taking after such a sharp move. Volatility around earnings has been a recurring theme, though the magnitude of today’s beat suggests sustained buying interest.

Broader market context remains supportive. Technology stocks have led major indexes higher in 2026, fueled by enthusiasm for artificial intelligence applications across industries.

Dell’s success also highlights the importance of execution in a competitive landscape. While rivals like Hewlett Packard Enterprise and Super Micro Computer compete in similar spaces, Dell’s scale, brand and ecosystem have enabled it to secure large wins.

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The Pentagon contract, in particular, cements Dell’s position as a trusted partner for government technology needs. Such deals often provide stable, long-term revenue streams that complement more cyclical commercial demand.

As the trading session progresses, attention will shift to whether the stock can hold these elevated levels. Early volume has been heavy, indicating broad participation in the rally.

Dell Technologies, once known primarily for personal computers, has successfully reinvented itself amid the digital transformation wave. Its current focus on AI positions it at the center of one of the most significant technology shifts in decades.

Friday’s market reaction represents a strong vote of confidence from investors. With raised guidance and a record backlog, Dell enters the second quarter with significant momentum.

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The coming months will test whether the company can convert its pipeline into sustained revenue growth and margin expansion. For now, the narrative around Dell remains firmly bullish among growth-oriented investors.

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Micron's $1,700 Setup Emerges

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Micron's $1,700 Setup Emerges

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ONEOK: Attractive Yield With Growth, Complementing Cash Flow With Writing Options (OKE)

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ONEOK: Attractive Yield With Growth, Complementing Cash Flow With Writing Options (OKE)

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Cash Builder Opportunities (aka Nick Ackerman) is a former fiduciary and a registered financial advisor with 14 years of investing experience.He is the leader of the investing group Cash Builder Opportunities, where his specific focus is on closed-end funds, dividend growth stocks, and option writing as an attractive way to achieve income. He shares model portfolios and research to help investors make better decisions, via his Investing Group’s active chat room.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of OKE, SOBO, VICI, SBUX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Delta Air Lines: My Buy Thesis Played Out, But Growing Risks Are A Real Concern (Rating Downgrade)

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Delta Air Lines: My Buy Thesis Played Out, But Growing Risks Are A Real Concern (Rating Downgrade)

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Microsoft: Market Is Missing The Big Picture

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Ultragenyx: The Setrusumab Reset Creates A Cleaner Rare Disease Opportunity

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TPG Mortgage Investment Trust: A Covered 12% Yield, But Still A Mortgage REIT (NYSE:MITT)

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REIT symbol. Real Estate Investment Trust, Real Estate Investment Trusts with miniature houses Investment concept. copy space, business background

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The author is a director at a small Boston-based software company where he oversees India operations across HR, finance, and business development. His broader professional background spans entrepreneurship, operations, and management across multiple industries. Earlier in his career, he was involved in building out a bottled beverages plant, reflecting a longstanding interest in business building, execution, and commercial strategy. He also holds a PhD in history and teaches part-time at a local college, bringing a research-driven and analytical perspective to both his professional and investing workHe has been investing in U.S. equities for nearly two decades, having started well before international access to U.S. markets became commonplace for Indian investors. Over time, he has developed a style that sits between value and growth. He is most interested in businesses where long-term earnings potential, competitive positioning, or strategic optionality are not yet fully reflected in the stock price. His work is grounded in valuation, but he also looks closely at business quality, management execution, industry structure, and the durability of growth.His primary sector focus is software, IT, and AI, including the growing application of AI across industries such as healthcare. He is especially interested in companies with scalable models, improving economics, and the ability to compound earnings over time. At the same time, his interests are not limited to technology. He also follows real estate-related opportunities, including REITs, and remains open to writing on other sectors where the investment case is compelling.On Seeking Alpha, he aims to write thoughtful, research-based articles that combine business analysis with valuation discipline. His goal is not simply to identify attractive stories but to assess whether the market is mispricing risk, growth, or long-term earnings power. He writes to share well-reasoned ideas with serious investors, refine his own thinking through public analysis, and contribute to a more disciplined discussion around investing. The author is associated with another Seeking Alpha analyst – Dr. Manimala M.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Eldorado Gold Corporation: Well Positioned To Take Advantage Of Elevated Gold Prices

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Eldorado Gold Corporation: Well Positioned To Take Advantage Of Elevated Gold Prices

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As an investor for almost 20 years, I like to focus on companies with low P/B and P/FCF ratios as I aim to collect dividends from the companies I invest in. I like to use DCF models in my analysis to find the best target prices for the stocks I want to open positions in. My motivation for writing on Seeking Alpha is to share my investment philosophy with a community of sophisticated investors and grow my knowledge base alongside them.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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10 Things to Know About Father’s Day as the Holiday Lands on Its Latest Possible Date

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Savannah Guthrie & Nancy Guthrie

Father’s Day 2026 falls on Sunday, June 21 — the latest possible date the holiday can occur, and one that happens to coincide with the June solstice this year. Here are 10 things worth knowing about the holiday’s history, traditions, and global variations as families across the country prepare to celebrate.

1. The date follows a simple but floating rule

In the United States, Father’s Day is celebrated on the third Sunday in June. The rule is short enough to memorize: the third Sunday in June. There is no equinox math, no lunar calculation, no church table. Count to the first Sunday in June, then add 14 days. That Sunday is Father’s Day. Because June begins on a different weekday each year, the third Sunday can fall anywhere from June 15 through June 21 — and this year lands right at the latest edge of that range.

2. A woman in Spokane is credited with founding the holiday

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Sonora Smart Dodd of Spokane, Washington, is usually credited with creating Father’s Day. She is said to have come up with the idea in 1909 while listening to a sermon on Mother’s Day. Dodd’s father, William Jackson Smart, was a Civil War veteran who raised six children alone on his farm after his wife died in childbirth.

3. Dodd originally wanted the holiday on her father’s actual birthday

Mrs. Dodd proposed to the Spokane Ministerial Association and the YMCA that they celebrate a “father’s day.” She chose June 5 because it was her father’s birthday. The idea received strong support, but the good ministers of Spokane asked that the day be changed to give them extra time to prepare sermons on the unexplored subject of fathers.

4. The first official observance happened in 1910

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The first Father’s Day in Spokane, Washington, was observed on June 19, 1910, the third Sunday in June, and became an annual event there. Soon, other towns had their own celebrations, though the tradition would take decades to become a permanent national holiday.

5. A mining disaster may represent an even earlier observance

Some historians point to the 1907 Monongah mine disaster in West Virginia as the first observance. The explosion killed 361 men, around 250 of them fathers, and left more than a thousand children without a dad. Grace Golden Clayton, whose own father died in the disaster, asked the pastor of her local Methodist chapel to hold a service of commemoration. The service happened, but it never became an annual tradition.

6. It took 62 years and multiple presidents to make it official

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Despite widespread support, Father’s Day was not a permanent national holiday for many years. President Woodrow Wilson wanted to make the day official after a visit to Spokane, but Congress resisted the suggestion, fearing the observance would become too commercialized. President Calvin Coolidge stopped short of issuing a national proclamation in 1924. President Lyndon Johnson recognized the holiday in 1966, but it wasn’t until 1972 that President Richard Nixon signed a law declaring that Father’s Day be celebrated annually on the third Sunday in June.

7. A competing founding story also exists

Sonora Smart Dodd isn’t the only person credited with originating the holiday. Harry C. Meek, a member of Lions Clubs International, claimed that he first had the idea for Father’s Day in 1915. Meek argued that the third Sunday of June was chosen because it was his birthday. The Lions Club has named him “Originator of Father’s Day.”

8. Commercialization came later than the holiday’s founding

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The popular story is that Father’s Day was cooked up by greeting-card makers. The actual story is closer to the opposite: it took one woman more than half a century of campaigning, plus three presidents, to get the day onto the calendar at all. Card sales came later, and the public mostly resisted them. In 1938, Dodd collaborated with the Father’s Day Council, a group of New York men’s wear retailers, for the commercial promotion of the observance.

9. Americans are projected to spend a record amount this year

Today, the holiday is one of the most celebrated days of the year in the U.S. In 2026, Americans are projected to spend a record $27.9 billion on Father’s Day, according to the National Retail Federation and Prosper Insights & Analytics. Popular purchases include greeting cards, clothing, special outings, gift cards, and personal care products.

10. The date — and even the season — varies dramatically around the world

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Father’s Day looks different depending on where you are in the world. According to International Event Day, more than 111 countries worldwide now observe Father’s Day, though only about 27% celebrate it on the same date each year. Several countries with strong Catholic traditions observe Father’s Day on March 19, the feast of Saint Joseph, venerated as the patron saint of fathers — Spain, Portugal, Italy, and Latin American countries including Honduras and Bolivia follow this date. Germany observes Father’s Day on Ascension Day, a movable Christian feast that falls 39 days after Easter, landing on May 14 in 2026. Australia and New Zealand celebrate on the first Sunday in September, reflecting the Southern Hemisphere’s seasons, where September marks the arrival of spring; that lands on September 6 in 2026. Thailand observes Father’s Day on December 5, the birthday of the late King Bhumibol Adulyadej, who reigned for over seven decades and was widely regarded as a fatherly national figure.

A Quiet Tribute, Often Marked With Color

Beyond gifts and family gatherings, the holiday carries smaller, more personal traditions as well. Some observe the custom of wearing a red rose to indicate that one’s father is living, or a white rose to indicate that he is deceased. Other males — for example, grandfathers or uncles who have assumed parenting roles — are often also honored on the day, broadening the holiday’s reach beyond biological fathers alone.

A Founder’s Lasting Legacy

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Sonora Smart Dodd campaigned for the holiday she helped create for more than 50 years before it finally achieved permanent national recognition. Dodd died in 1978 at age 96; her grave in Spokane reads “Founder of Father’s Day” — a fitting tribute to a woman whose decades-long advocacy ultimately reshaped how an entire country marks the contributions of fathers each June.

What This Means for 2026

With Father’s Day landing on its latest possible date this year and coinciding with the June solstice, families across the United States, Canada, and the United Kingdom will mark the occasion on June 21, while relatives connected to countries observing the holiday on different dates — whether in March, May, or September — will have their own separate opportunities throughout the year to honor the fathers and father figures in their lives.

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