New York, May 26, 2026, 10:03 (EDT)
- Dell shares were higher again Tuesday, building on Friday’s record close as traders looked ahead to Thursday’s earnings report. The stock has become a focal point in the AI-hardware trade.
- Investors want to see if AI server demand can keep topping forecasts and not hurt margins.
- Options traders are betting on a big post-earnings move, with pricing suggesting volatility could go either way.
Dell Technologies shares kept moving higher early Tuesday, up 3.4% at $305.21. Investors are looking for its fiscal first-quarter report to show how strong the AI server demand still is and how much it can keep pushing the stock.
Dell matters to Wall Street as a top play on AI infrastructure, outside chipmakers. The company is selling servers for AI data centers, and its stock has more than doubled this year. Investors want evidence that cloud and enterprise demand remains strong, outpacing supply.
Dell is set to post results before its conference call on Thursday, May 28 at 3:30 p.m. CDT, according to the company. Investopedia said the numbers are expected after the close, with Visible Alpha forecasting revenue of $36.18 billion and adjusted earnings at $2.97 per share, up from $1.55 a year ago.
Dell traders are bracing for a move. According to Investopedia, options pricing this week suggests Dell shares could swing up to 10% by the week’s close, which could extend the stock’s record run or take back some of last week’s gain.
Evercore ISI backed hardware and networking stocks leading into earnings, naming Dell its top pick. The firm wrote that “AI infrastructure and networking demand remain among the most durable areas of spend,” saying Dell and Hewlett Packard Enterprise are “well positioned” to beat and lift guidance. The note also mentioned HP Inc. and NetApp. Investing.com
Dell pushed expectations higher after it gave its own forecast. Back in February, Dell said it sees fiscal 2027 revenue between $138 billion and $142 billion and told investors that AI-optimized server revenue should hit about $50 billion, more than twice last year. COO Jeff Clarke said at the time, “the AI opportunity is transforming our company,” as Dell started the year with a record $43 billion AI-server backlog. SEC
Nvidia’s first-quarter revenue came in at $81.62 billion, clearing Wall Street’s estimates last week, and it’s guiding to $91 billion for the next quarter as AI chip demand holds up, according to the Associated Press. That’s kept a focus on names building and shipping the racks, boxes and systems for those chips.
AI servers bring in big revenue, but they also squeeze margins with expensive chips and memory. Reuters said in February that Dell and HP both hiked prices to deal with higher memory-chip costs. Gabelli Funds’ Hendi Susanto told Reuters Dell looked like it was “getting ahead of a challenge” that still affects its rivals. Reuters
Mixed analyst calls on Dell. Barron’s said Friday that Wells Fargo lifted its price target for Dell to $270 from $180. Morgan Stanley stayed Underweight with a $170 target, pointing to valuation and margin risk.
Dell might top first-quarter numbers and lift its sales forecast, with “substantial” demand for PCs and AI servers driving the business, according to Bank of America analysts, Investopedia reported. Even so, Dell shares have already traded above the consensus $223 target, the outlet said, and six out of seven analysts with active ratings have the stock at buy. Investopedia
Dell’s risk is pretty clear now. If revenue tops estimates but margins stay soft, or if guidance only meets the higher bar Wall Street set, that could shake a stock that’s already trading on plenty of optimism.
Dell’s report Thursday will tell if the company can move its backlog to profit fast enough for investors. There’s demand. The question is still the economics.
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