What Happened?
Shares of computer hardware and IT solutions company Dell (NYSE:DELL) jumped 2.8% in the afternoon session after investor optimism grew around the company's performance in the artificial intelligence (AI) hardware market, supported by a broader rally in technology stocks.
Dell benefited from surging AI and data center demand, which drove its financial results. The company reported record revenues of $29.8 billion in the second quarter of fiscal 2026, a 19% year-over-year increase. This growth was largely fueled by its Infrastructure Solutions Group, which saw revenue jump 44% to $16.8 billion.
Specifically, Dell shipped $8.2 billion worth of AI servers and booked $5.6 billion in new orders during the quarter.
Looking ahead, the company showed its confidence by raising its full-year fiscal 2026 AI server shipment forecast to $20 billion. The positive news came as money streamed back into the technology sector, with investors encouraged by advancements in AI across the industry.
The shares closed the day at $135.68, up 2.8% from previous close.
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What Is The Market Telling Us
Dell’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock gained 2.9% as positive analyst commentary on the company's artificial intelligence (AI) prospects overshadowed news of a chief financial officer transition.
Despite the announcement that CFO Yvonne McGill will step down, both JPMorgan and Bank of America maintained their positive ratings. Analysts highlighted Dell's leadership in the growing AI server market, its broad product portfolio, and consistent market share gains. Investor confidence was further supported by Dell's recent performance and outlook; the company reaffirmed its third-quarter and full-year guidance. Dell also recently reported shipping $10 billion in AI solutions in the first half of fiscal year 2026 and raised its AI server shipment forecast for the full year to $20 billion, signaling strong momentum.
Dell is up 16.4% since the beginning of the year, and at $135.60 per share, it is trading close to its 52-week high of $144.21 from November 2024. Investors who bought $1,000 worth of Dell’s shares 5 years ago would now be looking at an investment worth $2,045.
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