Dell (DELL) Stock Explodes 32% After Historic AI Server Revenue Surge

Key Takeaways

• Dell (DELL) shares rocketed more than 32% following first quarter FY2027 results showing revenue of $43.8 billion, an 88% year-over-year increase
• Earnings per share reached $4.86, significantly exceeding the Wall Street consensus of $2.96 by $1.90
• AI server revenue skyrocketed 757% to reach $16.1 billion, while the company secured $24.4 billion in AI-related orders during the quarter
• Full-year FY2027 revenue projections increased to $165–$169 billion, a substantial jump from earlier expectations around $140 billion
• Analyst price targets surged across the board, with JPMorgan setting a $500 target and Loop Capital reaching as high as $550

Dell Technologies (DELL) experienced a spectacular rally on Friday, climbing over 32% to close at $420.91, following the release of fiscal 2027 first quarter earnings that significantly exceeded analyst expectations across virtually all metrics.

Dell Technologies Inc., DELL

Quarterly revenue totaled $43.8 billion, representing an 88% year-over-year increase and substantially surpassing the $35.5 billion analyst consensus. Earnings per share of $4.86 demolished the $2.96 estimate by a remarkable $1.90.

The standout performance came from the AI infrastructure segment. Dell recorded $16.1 billion in AI-optimized server sales, marking a staggering 757% year-over-year growth. During the three-month period, the technology giant captured $24.4 billion in new AI server orders and concluded the quarter with an impressive $51.3 billion AI server order backlog.

Executive leadership increased full-year FY2027 revenue projections to between $165 and $169 billion, incorporating approximately $60 billion from AI server sales. This represents a significant upgrade from previous guidance of roughly $140 billion, well above the $142.1 billion analyst consensus.

Analyst Community Delivers Sweeping Price Target Upgrades

The investment research community moved swiftly to adjust their outlooks. Citi upgraded its price objective to $475 from $290 while maintaining its Buy recommendation, emphasizing that “demand continues to exceed supply, supporting visibility into a sustained backlog through year-end.”

Evercore ISI increased its target to $450 from $270, keeping its Outperform rating, describing the results as proof of “a much stronger server cycle than previously expected.” The research firm highlighted that Dell faces supply constraints, suggesting improved component availability could drive estimates higher.

JPMorgan elevated its price target from $280 to $500, pointing to enhanced clarity around sustainably higher earnings growth. The investment bank now assigns a 25x valuation multiple to Dell, up from the high-teens range previously.

Loop Capital delivered the most aggressive upgrade, pushing its target to $550 while characterizing the quarter as “a historic blowout” fueled by AI infrastructure buildout and operational efficiency gains.

Wells Fargo boosted its target to $505 from $270, and Melius Research established a $565 objective. According to MarketBeat data, the consensus analyst target now stands at $421, with the stock carrying 20 Buy ratings, one Strong Buy, eight Hold ratings, and one Sell recommendation.

Massive Order Pipeline Signals Sustained Growth Trajectory

Dell’s $51.3 billion AI server order backlog provides compelling evidence that enterprise demand remains robust. Company management confirmed ongoing supply constraints, suggesting revenue potential could climb even higher as production capacity expands to meet order volumes.

Crake Asset Management expanded its Dell position by 8.2% during the fourth quarter, increasing its holdings to 835,348 shares valued at approximately $105.2 million. Institutional ownership of the company now represents 76.37% of outstanding shares.

DELL began Friday’s trading session at $420.96. The stock’s 52-week low of $106.38 means shares have approximately quadrupled from their bottom. Before Friday’s explosive move, the 50-day moving average registered at $216.82.

Looking ahead to Q2 FY2027, Dell provided earnings per share guidance of $4.80, while full-year EPS expectations stand at $17.90.