Dell Technologies (NYSE:DELL) surged by 9.32 percent on Wednesday to finish at $441.80 apiece as investors drew encouragement from the surging demand for AI servers using Nvidia chips.
The stock rallied alongside its counterparts, Super Micro Computer (SMCI) and Hewlett Packard Enterprises, helped buoyed by SMCI’s record backlog of $60 billion in the fourth quarter of fiscal year 2026.
Investors took the backlog as a hint of strong demand for AI servers using Nvidia GPUs.
For illustration purposes only. Photo by Cookie Cutter on Pexels
$43.8B Record Revenue
For its part, Dell Technologies (NYSE:DELL) in May this year posted an 88 percent jump in revenues to $43.8 billion for the first quarter of the fiscal period ending May 28.
AI orders alone stood at $24.4 billion, while revenues from the said segment ended at $16.1 billion.
“We’re increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing,” it said earlier.
Dell Technologies (NYSE:DELL) is a long-standing partner of Nvidia Corp., with already more than 25 years of joint innovation.
AI-related collaboration began in 2023 with the launch of a wave of Dell PowerEdge Systems which can draw from NVIDIA’s full AI stack—including GPUs, DPUs and the NVIDIA AI Enterprise software suite.
In May 2023, the two firms introduced what they called the Project Helix, a joint solution to make it easier for businesses to build and use generative AI models on premises to quickly and securely deliver better customer service, market intelligence, enterprise search, and a range of other capabilities.
In 2024, they collaborated for the launch of Dell AI Factory with Nvidia—an end-to-end enterprise AI platform combining Dell infrastructure with NVIDIA’s accelerated computing and software.
This year, the two firms deepened with Blackwell-based AI servers, AI networking, and expanded AI Factory offerings aimed at enterprise customers and hyperscalers.
Upcoming Dividends
In other news, Dell Technologies (NYSE:DELL) announced the distribution of $0.63 in quarterly cash dividend on July 31, payable to all its shareholders on record as of July 21.
88% Q2 Growth Outlook
For the second quarter, Dell Technologies (NYSE:DELL) is targeting to rake in $43.8 billion in revenues, or an implied growth of 88 percent year-on-year.
“We’re increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing,” said Vice Chairman and Chief Operating Officer Jeff Clarke said.
Institutional Participation Improves
Institutional investors appeared to be bullish about Dell Technologies (NYSE:DELL), with more hedge funds holding a stake in the firm as of the first quarter of the year.
According to data from Insider Monkey, 72 hedge funds held positions in the firm, up from 65 in the quarter previously.
More importantly, the value of their holdings jumped by 28.6 percent to $1.669 billion from $1.298 billion year-on-year, signaling that investors are ramping up their exposure in the company to ride the rapidly booming AI.
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