New York, May 31, 2026, 13:03 ET
Dell Technologies is in focus this week after jumping 32.76% on Friday, closing at $420.91. Shares have now gained 42.59% in the past week, as investors increasingly look at Dell as a big artificial-intelligence infrastructure play and not just a PC stock.
Timing is a factor. U.S. equity markets are closed Sunday, after a short week that followed Memorial Day—NYSE says May 25 is the market holiday in 2026. When trading picks up, the focus stays on Dell and whether it keeps the price jump in its AI server business from one session.
Dell posted record fiscal Q1 revenue at $43.8 billion, an 88% jump from last year, with diluted EPS also hitting a new high at $5.24. Adjusted earnings, which strip out some accounting items, came in at $4.86 a share.
Dell put up a big number on the server side. The company booked $24.4 billion in AI orders and reported $16.1 billion in revenue from AI-optimized servers—machines for training or running AI models. “AI opportunity shows no signs of slowing,” COO Jeff Clarke said. CFO David Kennedy added that Dell started the year with “clear momentum.” Business Wire
Dell’s $16.1 billion haul from AI server sales put its server business ahead of its PC unit’s $14.6 billion, according to Reuters. Dell’s infrastructure segment has now beaten out PC revenue for four quarters in a row.
Dell is now looking for fiscal 2027 revenue of $165 billion to $169 billion. The company bumped its AI-optimized server sales target for the year up to about $60 billion. For the second quarter, Dell sees revenue coming in between $44 billion and $45 billion.
Dell drew fresh price target hikes from at least 13 brokerages after its report, LSEG data cited by Reuters showed. Melius Research analysts said they had “never seen anything like this” from Dell, calling it maybe one of the best AI plays. Reuters
Ben Reitzes from Melius Research pressed Dell execs on the earnings call, saying, “I do not think I have ever seen a Dell quarter like this,” and asked if demand was pulled forward in traditional servers and PCs. It’s the key question after such a big move. The Motley Fool
Hardware stocks caught a boost. Super Micro Computer and Hewlett Packard Enterprise both jumped about 14% after Dell’s numbers, according to Reuters. HP Inc., which competes with Dell in PCs, added 10%. HP’s personal-systems revenue climbed 13.2%, below the 17% growth Dell logged in its PC unit.
HPE next in focus as investors look for clues. The server and enterprise-infrastructure player will talk fiscal Q2 numbers with analysts Monday, June 1, at 5 p.m. ET. A beat from HPE backs up the idea that Dell’s recent quarter points to broader demand. If HPE’s results are softer, Dell’s move starts to look more specific to the company.
Government contracts helped too. Pentagon News reported that Dell Federal Systems won a five-year, $9.7 billion deal to handle Microsoft software and services for the defense department, the intelligence community, and the U.S. Coast Guard. The contract is expected to save $422 million a year.
But risks remain. Dell is still dealing with tight memory chip supply, and it has raised prices to cover higher costs. If buyers rushed in early to lock down gear, or if memory expenses jump past what Dell can charge, or if AI server demand softens even a bit, Friday’s stock gain could quickly reverse.
Dell faces a fresh challenge after Friday’s sharp gain. The company needs to prove that the move wasn’t only a quick reaction to one quarter, but the beginning of steady earnings that can hold up under tighter supply, competition from peers, and a stock price that’s moved way ahead on hopes for more AI spending.
