New York, Feb 27, 2026, 12:35 (EST) — Regular session
- Dell shares jumped, with investors seizing on a more tangible payoff from AI infrastructure outlays.
- The rally is taking shape while broader U.S. indexes slip and tech remains under pressure.
- Attention shifts to costs, pricing power, and what’s next on the data and earnings front.
Dell Technologies (DELL.N) surged 22% by midday Friday, with shares changing hands at $148.24 after touching an intraday peak of $148.40. That’s a sharp move up from Thursday’s $121.45 close, according to market data.
Bargain hunting showed up on a day when sentiment elsewhere was still bleak. The Dow dropped 1.2%, the S&P 500 lost around 0.7%, and the Nasdaq shed 1% as traders worried over inflation and doubted how quickly AI outlays will deliver. “Inflation has reared its ugly head, and the questioning of the true value of technology firms has resulted in a major selloff,” said Ben Fulton, CEO of WEBs Investments. Reuters
Dell cranked up its AI ambitions and sweetened the pot for shareholders. The company expects revenue from its AI-optimized servers—those tailor-made for training and running AI models—to more than double, hitting roughly $50 billion by fiscal 2027. Shareholder returns are also getting juiced: Dell announced a 20% dividend increase along with a fresh $10 billion set aside for stock buybacks. Analysts flagged the spike in demand as Big Tech races ahead with new AI projects, but they also cautioned that DRAM, the essential memory chip for most servers, is getting pricier.
On the earnings call, executives pushed the narrative around pricing and supply. Dell COO Jeff Clarke said the initial “sticker shock” for customers gave way as they “quickly grasped the supply constraints,” with clients hurrying to secure parts. Clarke added that Dell bumped up server prices on Dec. 10 and raised PC prices on Jan. 6. The company has now set a target for fiscal 2027 revenue between $138 billion and $142 billion and expects adjusted earnings per share — that’s profit per share, minus certain items — of $12.90. Fourth-quarter revenue hit a record $33.4 billion. Reuters
Still, that pricing power has a downside. Persistent hikes in component costs—if buyers start resisting steeper tags—could hit consumer hardware first, followed by the enterprise refresh cycle if the pattern holds.
Dell faces stiff competition in the AI server space—Super Micro Computer stands out as a direct rival. On the PC side, HP and Lenovo keep up the pressure. If demand drops off, pricing adjustments could quickly alter market share.
After Friday’s surge, Dell doesn’t have much cushion if margins slip. Investors are looking to see whether the company can still push costs onto customers without losing sales—and whether the AI server momentum is more than a one-off spike.
Dell’s next big marker comes with its fiscal 2027 Q1 numbers, set for May 28 at 3:30 p.m. CDT, per its investor calendar. AI server demand and pricing are front and center for traders, along with any detail on how fast buybacks accelerate after the new authorization.
The U.S. Employment Situation report for February lands March 6 at 8:30 a.m. ET, the Labor Department’s headline monthly jobs data. If the numbers come in strong, rate fears could flare up again, putting tech stocks under the microscope—right as Dell works to keep the lift from its earnings.
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