FILE PHOTO: Dell Technologies
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Dado Ruvic
Dell Technologies Inc. shares jumped the most in two years after the company gave an outlook for sales of its artificial intelligence servers that exceeded estimates, a sign of robust demand for machines helping fuel the AI data center build-out.
The company will generate about $50 billion in AI server revenue in the current fiscal year, which ends in January 2027, Dell said Thursday in a statement.
“The AI opportunity is transforming our company,” Chief Operating Officer Jeff Clarke said in the statement. Dell enters the year “with a record backlog of $43 billion — powerful proof that our engineering leadership and differentiated AI solutions are winning,” he said.
The shares surged 22 per cent to $148.08 at the close Friday in New York, their biggest single-day gain since March 1, 2024. The stock was up 5 per cent over the past 12 months heading into Friday’s trading.
Dell’s servers designed to run AI workloads are attracting customers from companies that rent computing power like CoreWeave Inc. and Nscale Global Holdings Ltd., as well as corporate clients and major AI providers. The Texas-based company has been working to hold down costs and improve margins even as prices for memory chips rise rapidly.
In the fiscal fourth quarter, Dell reported an operating margin of 14.8 per cent for its server and networking unit, compared with an average estimate of 12.9 per cent. In its computer unit, the margin was 4.7%. Analysts, on average, projected 6.18%.
“Across the industry, the environment remains highly dynamic, with unprecedented AI demand creating sustained supply tightness and frequent pricing resets,” Clarke said in prepared remarks, referring to the memory chip issue.
Earnings, excluding some items, will be about $12.90 a share in the current fiscal year, Dell said in the statement. Sales will be about $140 billion. Analysts, on average, projected profit of $11.56 a share on revenue of $126.3 billion.
The company also announced a $10 billion increase in its share buyback program.
In the quarter, total sales increased 39% to $33.4 billion, compared with the average estimate of $31.7 billion. Profit, excluding some items, was $3.89 a share. Analysts, on average, projected $3.52.
Revenue produced by the infrastructure group increased 73 per cent to $19.6 billion. Sales in the computer unit, called the Client Solutions Group, jumped 14 per cent to $13.5 billion.
(Updates with closing share price in the fourth paragraph.)
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Published on March 1, 2026
