Dell Technologies shares climbed nearly 11% on Wednesday following the company's exceptional Q2 results, as reported by ETMarkets.com. The surge was driven by record second-quarter revenue of $47 billion, representing a 58% increase year-over-year, which surpassed Wall Street estimates of $44.92 billion. The company also raised its full-year 2027 revenue forecast to $192 billion from $167 billion, with adjusted earnings per share target increased to $25.50 from $17.90 earlier. According to ETMarkets.com, shares of other AI server makers, including Super Micro and Hewlett Packard Enterprise, were up 2.2% and 1.4%, respectively, following Dell's strong results. Despite the strong performance, 18 of 25 analysts tracked by Zacks Investment Research rate the stock as either a buy or a strong buy, suggesting much of Dell's success this year is already priced in.
Dell's AI-optimized server revenue came in at $16.4 billion, up 100% year-over-year, as reported by Investing.com India. The company's AI server business achieved a record $95 billion backlog as of the end of the second quarter, indicating strong future demand for AI infrastructure. As noted by ETMarkets.com, Dell's servers, equipped with Nvidia's chips, are sought by clients, including AI cloud providers Nscale and CoreWeave, to build computing clusters for training and running AI models. The company's success in this segment has been crucial for its exceptional growth trajectory in 2026, with J.P. Morgan analysts noting Dell's record $60 billion of orders and $95 billion backlog in the quarter. The brokerage raised its price target on the stock to $735, the highest among analysts tracked by LSEG.
AI infrastructure companies have benefited from rising demand as tech firms and hyperscalers ramp up investments in data centers to support large language models and other AI applications, according to ETMarkets.com. The storage strength is really playing a role and it seems sustainable as AI is driving fundamental growth in Dell's most profitable business, as noted by analysts at Melius Research. Dell's non-GAAP operating income reached $5.9 billion, up 160% year-over-year, demonstrating the explosive growth potential in the AI supply chain. The company's transformation from a traditional PC manufacturer to a key cog in the AI supply chain has positioned it as one of the biggest growth stories of 2026.
Dell is set to add about $23.26 billion in market value at the current share price of $461 if gains hold, as reported by ETMarkets.com. The company's shares were trading at 18.12 times expected earnings over the next 12 months, according to LSEG data, compared with 12.56 and 8.06 for HPE and Super Micro, respectively. Despite the strong performance, 18 of 25 analysts tracked by Zacks Investment Research rate the stock as either a buy or a strong buy, suggesting much of Dell's success this year is already priced in. However, two analysts said the stock still has room to run, despite having already tripled in 2026, as reported by CNBC TV18, indicating continued confidence in the company's AI-driven growth trajectory.
