Dell Stock (DELL) Jumps 4% as Lenovo’s AI Boom Validates Server Demand

NEW YORK, August 13, 2026, 07:11 EDT

Dell added 4.08% before Thursday’s open after Wednesday’s 9.87% gain.
Lenovo’s AI-related revenue reached $9.3 billion, or 35% of quarterly sales.
Dell’s $504.28 premarket price edged above the current $502.78 analyst target average.

Dell Technologies NYSE:DELL gained 4% before Thursday’s open after Lenovo’s quarterly revenue beat strengthened the case for sustained AI-server demand. Dell traded near $504.28 at 06:52 EDT. The U.S. cash session opens at 09:30 EDT.

The read-through is unusually direct. AI produced about 35% of Lenovo’s latest revenue. Dell’s AI-optimized servers supplied 36.7% of its latest quarterly revenue.

Demand is no longer the only question. Dell’s premarket price sat 0.3% above the $502.78 average analyst target. The shares had climbed 14.36% from Tuesday’s close, including Thursday’s early move.

DELL checkpoint	Price	Move
August 11 close	$440.97	-3.69%
August 12 close	$484.50	+9.87%
August 13 premarket, 06:52 EDT	$504.28	+4.08%
Change from August 11 close	—	+14.36%

Lenovo Group HKG:0992 reported fiscal first-quarter revenue of $26.94 billion. That rose 43% and beat the $22.3 billion analyst estimate. Its shares advanced as much as 22% in Hong Kong.

AI-related revenue increased 60% to $9.3 billion. Lenovo’s AI-server pipeline reached $54 billion, up 157% from the prior quarter. Chief Executive Yang Yuanqing said the company was becoming “a global AI infrastructure leader.”

AI revenue exposure	Total revenue	AI revenue	AI share	AI growth
Lenovo fiscal Q1 2026/27	$26.94B	$9.30B	34.5%	+60%
Dell fiscal Q1 2027	$43.84B	$16.10B	36.7%	+757%
Dell fiscal 2027 guidance midpoint	$167.00B	$60.00B	35.9%	+144%

Lenovo reports broader AI-related revenue; Dell reports AI-optimized server revenue. The categories are not identical.

The similar revenue shares matter more than their absolute size. They suggest the AI buildout is lifting more than one vendor. Yet the definitions differ, and Lenovo’s pipeline is not recognized revenue.

Dell already entered the quarter with stronger evidence. Fiscal first-quarter revenue rose 88% to $43.84 billion. It booked $24.4 billion of AI orders and recognized $16.1 billion of AI-server revenue.

“We booked $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue,” Chief Operating Officer Jeff Clarke said. Dell raised its fiscal-year AI-server revenue outlook to about $60 billion.

Dell fiscal Q1 2027 measure	Result	Year-earlier result	Change
Total revenue	$43.84B	$23.38B	+88%
Infrastructure Solutions revenue	$29.00B	$10.30B	+181%
AI-optimized server revenue	$16.10B	—	+757%
Non-GAAP gross margin	18.1%	21.6%	-350 basis points
Operating cash flow	$4.08B	$2.80B	+46%

The mix has a cost. Dell’s non-GAAP gross margin fell 350 basis points to 18.1%. Product revenue doubled, while lower-margin AI systems became a larger share of sales.

Lenovo also supplied a PC signal. Its PC, tablet and smartphone division grew 27%, despite a 2% drop in global PC shipments. HP Inc. NYSE:HPQ rose 1.8% before Thursday’s open.

Wall Street remains positive, but the target spread is wide. Morgan Stanley cut its target to $430 on Monday and kept a Hold. J.P. Morgan’s $550 target implies more room. The 27-analyst consensus is Buy.

Analyst or consensus	Recommendation	Price target	Date
Morgan Stanley	Hold	$430	August 10
Mizuho Securities	Buy	$500	July 25
Citi	Buy	$515	July 24
J.P. Morgan	Buy	$550	July 22
Bernstein	Buy	$500	July 16
S&P Global consensus, 27 analysts	Buy	$502.78 average	Updated August 10

Dell reports fiscal second-quarter results on September 3. Its current guidance calls for $44.0 billion to $45.0 billion of revenue. The midpoint implies 49% growth.

Risks: Memory inflation could keep pressuring margins and PC volumes. A slower conversion of AI orders into profitable revenue would test the valuation. Thursday’s producer-price report may also move growth stocks.

For now, Lenovo has validated the demand side. Dell’s September report must validate the price investors are paying for it.

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Further analysis

Editorial insight

What is driving Dell Technologies shares higher ahead of Thursday’s market open?

Dell climbed nearly 4% to $504.28 after Lenovo posted sharply higher revenue and robust AI demand. The advance comes after a 9.87% jump for Dell on Wednesday. Investors are viewing Lenovo’s results as new confirmation of solid server and PC demand industry-wide.

What could Lenovo's results indicate for Dell's AI server segment?

This underpins the demand outlook, though it does not ensure a particular outcome for Dell. AI-driven products contributed 35% of Lenovo's revenue last quarter. Dell derived 36.7% of its most recent quarterly revenue from AI-enhanced servers. Lenovo additionally disclosed an AI-server pipeline valued at $54 billion, representing a 157% rise from the previous quarter.

Has Dell’s share price factored in the anticipated AI-related growth?

That could largely be the case. Dell's premarket value of $504.28 was just above the consensus target of $502.78 set by 27 analysts. Analyst price targets are wide, ranging between $360 and $700, highlighting doubts over the pace at which AI revenue translates to sustained profits.

Which financial risk is currently the primary concern for Dell investors?

Margins are still the primary focus. Dell reported a 350 basis point drop in its fiscal first-quarter non-GAAP gross margin, landing at 18.1%, as both product and AI-server sales grew. Robust order growth provides support, but shareholders require proof that this sales blend will lead to higher profit for each revenue dollar.

What is the timing for Dell's upcoming key catalyst?

Dell will announce its fiscal second-quarter results on September 3. The company forecasts revenue between $44.0 billion and $45.0 billion, with $44.5 billion as the midpoint of guidance. Investors are set to pay close attention to AI-server revenue, the conversion of orders, gross margin, and whether there is an update to the current full-year AI-server goal of $60 billion.