Stock Market Today, Sept. 2: Dell Surges 16% on Soaring AI Backlog
Dell Technologies (NYSE:DELL), a PCs, servers, storage, and enterprise AI infrastructure provider, closed at $492.00, up 15.76%. The company's stronger-than-expected quarter and raised outlook, backed by record AI server orders, drove the move, and investors are now watching AI s
On September 2, Dell Technologies experienced a surge in its stock price, closing at $492.00, a 16% increase. This rise was driven by stronger-than-expected earnings and raised guidance, fueled by record AI server orders. Trading volume was notably high, with 35.0M shares exchanged, approximately 353% above the three-month average of 7.7M shares.
Dell's performance has been exceptional, with revenue and adjusted EPS increasing by 58% and 203% in Q2. The company's success is largely attributed to its AI-Optimized Server revenue, which doubled from the previous year and accounted for $16.4 billion. Additionally, Dell has a record backlog of $95 billion in AI server orders, indicating continued growth potential.
Management raised full-year guidance to a 69% sales growth rate and a projected 148% increase in adjusted EPS, to $25.50. While the stock is trading at 19 times forward earnings, analysts believe this is justified given Dell's AI potential and strong server, networking, and PC businesses. Despite its impressive performance, Dell Technologies was not included in The Motley Fool's list of the 10 best stocks for investors to buy, highlighting its stock as potentially overlooked for long-term growth.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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