Dell stock surges on record orders for AI servers

On Wednesday, Dell Technologies' stock experienced a significant surge of up to 10% before scaling back its gains. This surge was primarily driven by the company's impressive financial performance and guidance for the upcoming fiscal year. The tech giant reported a record $60.9 billion in AI server orders and a staggering backlog of $95 billion at the end of its fiscal second quarter. Additionally, the company's traditional businesses, such as servers, networking, and storage, also saw growth.

Dell Technologies' fiscal 2027 second quarter saw record revenue of $47 billion, marking a remarkable 58% increase compared to the previous year. Earnings per share rose to $6.34, representing a staggering 273% growth from the same period a year ago. Adjusted earnings expanded by 203% to $7.04 per share. Dell's CFO, David Kennedy, expressed optimism during the earnings call, stating that the company's momentum continues to grow and raising expectations across all business lines.

Looking ahead, Dell Technologies has raised its full-year fiscal year 2027 revenue outlook by $25 billion, estimating it to reach $192 billion, which is nearly a 70% increase compared to the previous year. The company's stock has climbed more than 230% year to date, outperforming its peer Hewlett Packard Enterprise, which also rose by 110% since the beginning of the year.