Dell's stock soars 32% after record AI sales and Pentagon deal

Dell Technologies saw its stock price surge by roughly a third on Friday. The jump came after the company reported strong financial results and raised its revenue outlook. Analysts have also revised their price targets upwards in response to the performance. The company’s first-quarter revenue climbed by nearly 88% compared to the same period last year. Adjusted earnings per share reached $4.86, well above the market’s expectation of $2.94. AI server sales alone hit $16.1 billion, marking a staggering 757% increase.

Dell now expects full-year revenue growth of around 50%. Its AI revenue forecast has been revised even higher, projecting a 144% annual rise. These updates prompted major banks to adjust their targets. J.P. Morgan raised its price target from $280 to $500. Susquehanna upgraded Dell to Positive and set a new target of $700. Meanwhile, Morgan Stanley admitted it had underestimated the company’s potential. Beyond financial gains, Dell also secured a $9.7 billion Pentagon contract. The deal involves providing software solutions to the US Department of Defense.

The stock’s 32% rise reflects investor confidence in Dell’s growth trajectory. Strong AI sales, higher earnings, and a major government contract have all contributed to the positive outlook. Analysts now view the company as a key player in the expanding AI and enterprise technology markets.