Dell shares spike as surging AI server demand spurs record forecast raise

Dell Technologies raised its full-year fiscal 2027 revenue forecast by a massive $25 billion (to $192 billion) and bumped its adjusted earnings outlook, propelled by an unprecedented wave of AI server orders.

AI infrastructure companies have benefited from rising demand as tech firms and hyperscale’s ramp up investments in data centers to support large language models and other AI applications.

Over the prior 12 months, Dell booked more than $130 billion in AI server orders.

The company now expects fiscal 2027 revenue specifically for AI-optimized servers to hit $74 billion, up sharply from its prior $60 billion forecast.

Peer Super Micro Computer had also reported upbeat results last month.

Dell shares surged roughly 7% in extended trading following the report, reflecting robust investor confidence in the hardware infrastructure Supercycle.

As reported by Reuters, the company's Chief Operating Officer Jeff Clarke noted that AI server demand is expanding rapidly beyond major tech players into neo clouds, sovereign entities, and enterprise customers, pushing Dell's active AI customer count past 6,500.

Dell's second-quarter revenue jumped 58% year-over-year to a record $47 billion, easily beating Wall Street expectations.

Additionally, the company's PC segment saw a 20% sales increase driven by commercial clients upgrading hardwar