Dell shocks Wall Street with booming AI server sales. Where analysts see it headed next

Dell Technologies delivered record results for its fiscal first quarter on Thursday, largely due to unexpectedly strong traction in its artificial intelligence-linked server business. The blockbuster beat led several Wall Street analysts to become more bullish on the AI infrastructure name. The server maker reported revenue of $43.84 billion for the period ended May 1, above the $35.43 billion expected by analysts polled by LSEG. Its top-line grew nearly 88% on a year-over-year basis, marking the company's biggest quarterly revenue increase since its return to the public market in late 2018. Dell, headquartered in the Texas Hill Country north of Austin, also posted adjusted earnings of $4.86 per share, topping the Street's consensus estimate of $2.94. In response, Dell soared as much as 35% at one point Friday and was recently higher by about 29%, putting the stock on track for its best day ever. DELL 1D mountain Shares of Dell skyrocketed on Friday. Dell said Thursday that its server unit had gotten a massive boost from widening AI adoption, challenging analysts' assessment that demand for the business was already reflected in the stock price. AI server revenue soared 757% from the same period a year ago, totaling $16.1 billion, eclipsing the proceeds from Dell's PC unit sales. Executives at Dell also said that AI-optimized server revenue could reach $60 billion for the full year through January 2027, up from its earlier forecast of $50 billion. …