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Dell Shares Jump 14% After Record Results, AI Demand Surges
Dell makes computers and servers that businesses use.
Its shares rose sharply after the company reported very strong results.
Dell said it made a record $47 billion in revenue during its second quarter.
Much of the growth came from servers used for artificial intelligence.
Customers are spending more money on data centers and AI systems.
Dell also said it received a record $60.9 billion in AI-server orders.
The company expects to make more money from AI servers in the future.
Other server companies, including Super Micro Computer and Hewlett Packard Enterprise, also saw their shares rise.
Dell shares rose 14% intraday to $484 on Wednesday, 2 September, after record second-quarter results.
Second-quarter revenue increased 58% to a record $47 billion, beating the $44.92 billion Wall Street estimate.
Infrastructure Solutions Group revenue rose 89% to $16.4 billion, while traditional server and networking sales more than doubled to $10.5 billion.
Adjusted earnings per share reached $7.04, up from $2.30 in the same period last year.
Dell raised its fiscal 2027 AI-optimized server revenue forecast to $74 billion and total revenue outlook to approximately $192 billion.
- Who
- Dell Technologies, its customers, investors, and server competitors including Super Micro Computer and Hewlett Packard Enterprise.
- What
- Dell reported record fiscal second-quarter revenue and earnings, triggering a 14% intraday share-price increase and higher forecasts.
- Where
- Dell Technologies is based in Texas; the article does not specify where the trading occurred.
- When
- Wednesday, 2 September; the results covered Dell’s second fiscal quarter.
- Why
- Demand increased for AI infrastructure, data-center equipment, and CPU-based servers used for AI-related workloads.
Key facts
- Share move
- Dell shares rose 14% intraday to $484.
- Quarterly revenue
- Revenue rose 58% to a record $47 billion.
- Wall Street estimate
- Analysts had estimated revenue of $44.92 billion.
- Adjusted EPS
- Adjusted earnings per share reached $7.04, compared with $2.30 a year earlier.
- AI-server orders
- Dell booked a record $60.9 billion in AI-server orders.
- AI-server backlog
- Dell ended the quarter with a record $95 billion backlog.
- Fiscal 2027 outlook
- Dell expects approximately $74 billion in AI-optimized server revenue and about $192 billion in total revenue.
Quotes
David Kennedy
Chief financial officer at Dell Technologies
“That's clearest in our AI server business where we booked a record $60.9 billion in orders, recognized a record $16.4 billion in revenue and exited the quarter with a record $95 billion backlog.”
livemint.com
“IT environments have shifted from cost centres to value drivers that fuel growth and competitive advantage, and customers are investing accordingly – creating opportunity across our portfolio.”
livemint.com
Sources
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