Dell shares jump 40% in extended trading on strong AI-driven $167B revenue outlook

Dell Technologies Inc. shares jumped nearly 40% after the company raised its revenue outlook for the fiscal year ending January 2027 to about $167 billion, including $60 billion from AI server sales.

That marks an increase by at least $25 billion from its previous outlook of $140 billion and analysts’ average estimate of $142.1 billion, Bloomberg reported.

Rising demand for artificial intelligence (AI) infrastructure is the key driver.

Servers built for AI workloads are drawing strong orders from cloud infrastructure firms, enterprise customers and major AI providers.

The company booked $24.4 billion in AI orders in the quarter ended May 1 and generated $16.1 billion in AI server sales, according to Chief Operating Officer Jeff Clarke. “The AI opportunity shows no signs of slowing,” he said.

Dell’s AI servers are being deployed by customers including computing rental firms such as CoreWeave Inc. and Nscale Global Holdings Ltd., alongside corporate clients shifting workloads from model training to real-world AI deployment.

“That makes it a more broad-based durable growth over the long term for us,” Chief Financial Officer David Kennedy said in an interview with Bloomberg Television.

The company also ended the quarter with an AI server order backlog of $51.3 billion. At the same time, its traditional server business nearly doubled to $8.5 billion, while PC revenue rose 17% to $14.6 billion, both ahead of expectations.

Momentum in the business has also been reflected in the stock, which has surged more than 150% this year.

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