Dell shares surge on record AI server orders and revenue outlook hike

Dell Technologies shares rose as much as 10 per cent on Wednesday following the release of its fiscal 2027 second-quarter results, which revealed a significant surge in demand for artificial intelligence hardware. The company reported record revenue of $47 billion, a year-on-year increase of 58 per cent, driven largely by its booming AI server business.

The server maker booked a record $60.9 billion in AI server orders during the period and exited the quarter with a backlog of $95 billion. This accumulation of orders allowed Dell to raise its full-year fiscal 2027 revenue outlook by $25 billion to $192 billion, representing nearly 70 per cent growth year on year.

Profitability also saw a substantial jump, with reported earnings per share reaching $6.34, up 273 per cent from the previous year. Adjusted earnings per share rose 203 per cent to $7.04, reflecting the company’s ability to convert high demand into bottom-line growth.

CFO David Kennedy stated that the momentum observed in the market continues, noting that the company is raising expectations across every line of business. Beyond AI, Dell reported growth in its traditional servers, networking, and storage segments, suggesting a broad-based recovery in enterprise spending.

The surge in orders is attributed to enterprise customers increasingly adopting artificial intelligence and deploying AI servers locally to run agentic AI queries. This shift towards on-premise AI processing has become a key driver for the company’s financial performance.

Dell stock has risen more than 230 per cent year to date, outperforming many of its peers. Competitor Hewlett Packard Enterprise, which is up 110 per cent since the start of the year, also saw its shares jump on Wednesday, indicating a wider rally in the hardware sector.