Shares of Dell Technologies surged nearly 40% in premarket trading Friday after the company raised its annual revenue and profit forecasts, driven by robust demand for its Nvidia-powered AI servers.
The company is set to add more than $81 billion in market value if gains hold. Dell has benefited significantly from data center investments by Alphabet and Amazon, as well as price increases and improved supply chain management.
On Thursday, Dell raised its annual revenue forecast to between $165 billion and $169 billion, up from a previous range of $138 billion to $142 billion. The company now expects AI server revenue of about $60 billion in fiscal 2027, up from $50 billion.
Morgan Stanley called it one of the most impressive quarters they've seen in hardware. Dell shares have more than doubled this year, outpacing the S&P 500's 10.5% rise. First-quarter revenue surged 88% to $43.84 billion, beating the average analyst estimate of $35.43 billion.