Dell Technologies shares rose 15% in late morning trading, leading a broader rally among AI server names. Hewlett Packard Enterprise climbed 9%, while Super Micro Computer gained 5%. Dell moved from about $252.80 at the prior close to $290.55 intraday, a large move for a company with roughly a $94 billion market cap. The rally comes one week before Dell reports fiscal Q1 2027 results on May 28. Bank of America expects a beat on revenue and EPS and a raise to FY27 guidance, with Polymarket assigning a 94% probability of beating $2.95 non-GAAP EPS consensus. The outlook builds on a strong Q4 FY26, including rapid growth in AI-optimized server revenue and a record AI backlog. HPE is also benefiting from AI capex trends through its ProLiant AI servers, Cray HPC systems, and networking optionality from the Juniper Networks acquisition.
"The setup builds on Dell's blowout Q4 FY26 print that delivered revenue of $33.38 billion, AI-optimized server revenue of $8.95 billion (up 342% year over year (YoY)), and a record $43 billion AI backlog entering FY27. Management has guided full-year FY27 revenue to $138 billion to $142 billion, with AI-optimized servers projected near $50 billion."
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