Dell's Stock Surges: AI Servers and Margin Expansion Drive Growth
Dell Technologies (DELL) has seen its stock rise by over 300% in the past year, significantly outperforming both the S&P 500 and peer Hewlett Packard Enterprise. The surge is attributed to a combination of strong AI server demand and margin improvements from scale and storage growth. Over twelve months ending fiscal Q2 2027, Dell booked $131.7 billion in AI server orders with $95 billion remaining as backlog. Revenue for the quarter reached $47 billion, up 58%, while management raised its full-year revenue guidance by $25 billion to a midpoint of $192 billion. Dell's margin expansion came from scale and storage improvements rather than AI servers alone. The ISG segment’s non-GAAP operating margin rose sharply due in part to cost efficiencies, with expenses guided at 8% of revenue for fiscal 2027 — the lowest since Dell went public.
Topics: AI servers margin expansion revenue growth stock performance