Dell Surges Over 15% on Strong AI Server Orders and Raised Guidance
On September 2, Dell Technologies (NYSE: DELL) surged over 15%, closing at $492.00 after reporting stronger-than-expected Q2 results driven by record orders for its AI servers. The company's revenue and adjusted earnings per share rose sharply—by 58% and 203%, respectively—and management raised full-year guidance, projecting a 69% sales increase and a 148% rise in adjusted EPS to $25.50. Dell’s AI-Optimized Server revenue reached $16.4 billion for the quarter—double from last year—with an impressive backlog of $95 billion suggesting sustained growth ahead. The stock's trading volume spiked over 350%, indicating strong investor interest in its AI infrastructure potential and broader IT services. The S&P 500 rose by nearly half a percent, while rivals like HP (HPQ) and Hewlett Packard Enterprise (HPE) also saw gains as investors tracked Dell’s momentum. The market is now closely watching how the company manages server demand and margin expansion.
Topics: AI servers Dell Technologies revenue growth stock price movement