Dell Surges 10% After Blowout Q2 Earnings and $25 Billion Guidance Raise Fueled by AI Server Demand

Dell Technologies shares jumped roughly 10% in premarket trading on September 2 after the company reported a blowout fiscal second quarter, with revenue rising 58% year over year, and sharply raised its full-year outlook on the back of surging demand for AI-optimized servers. The company lifted its fiscal 2027 revenue forecast to $192 billion from $167 billion, a $25 billion increase, and raised its adjusted earnings-per-share guidance to $25.50 from $17.90, signaling that the AI infrastructure buildout is translating directly into Dell's top and bottom lines.

A wave of Wall Street analysts responded by raising their price targets. Bank of America and Mizuho both moved to $600, Evercore ISI to $575, Raymond James to $617, and Melius to $735, citing margin strength alongside AI server growth. Morgan Stanley, Goldman Sachs, Citigroup, and Piper Sandler also raised their targets, though specific figures for those firms were not disclosed in all sources. CNBC noted that Dell has already more than tripled in value in 2026, and analysts say further upside remains.

Dell's chief executive described the AI boom as requiring nonstop scrambling for parts, while COO Jeff Clarke pointed to AI agents as a force set to reshape data center architecture and cited a market opportunity of roughly $1 trillion. The company also reported a substantial AI server backlog heading into the second half of the fiscal year.

Separately, Dell declared a quarterly dividend of $0.63 per share and announced the Dell 14S, a lightweight consumer laptop with up to 21 hours of battery life and an aluminum chassis in four colors, unveiled at IFA 2026 in Berlin and aimed at students and budget-conscious buyers.