Dell Technologies Inc. shares jumped in after-hours trading Thursday after the company raised its annual AI-optimized server sales outlook to $60 billion [1].
The update signals a massive acceleration in corporate investment for artificial intelligence infrastructure, positioning Dell as a primary beneficiary of the ongoing AI boom.
The stock price increase varied across reporting sources following the announcement on May 28, 2026. Some reports indicated a rise of more than 25% [1], while other figures placed the gain at approximately 30% [2] or as high as 39% [3]. One report noted the shares jumped almost 40% [4] in extended trading on the Nasdaq.
Dell's fiscal Q1 2027 earnings release highlighted a surge in demand for servers specifically designed to handle AI workloads. This demand has driven record revenue growth for the company, prompting the leadership to lift its financial expectations for the year.
Chief Financial Officer David Kennedy said the current growth is "broad based" during an interview with Bloomberg Television [1].
The company's updated $60 billion outlook [1] far exceeded previous analysts' estimates, reflecting a rapid shift in how enterprises are deploying hardware to support generative AI, and large-scale machine learning models. The growth is centered on the company's ability to scale AI-optimized server production to meet a global market appetite that continues to outpace supply.
“Dell raised its AI server sales outlook to $60 billion annually”
This revenue jump reflects a transition from AI experimentation to full-scale infrastructure deployment. By raising its outlook to $60 billion, Dell is signaling that the demand for AI hardware is not limited to a few cloud giants but is spreading across a broader base of enterprise customers. This suggests that AI-optimized hardware has become a critical capital expenditure for companies across various sectors.
