Dell (DELL) Stock Soars 38% as AI Server Revenue Skyrockets 757% in Record Quarter

Key Highlights

Table of Contents

Dell Technologies jumped 38% following a blockbuster Q1 report showing revenue of $43.8 billion and AI server sales up 757%
HPE and NetApp stocks rallied in tandem, gaining 19% and 15% respectively on positive sector momentum
The S&P 500 continues its impressive streak, poised to close its ninth consecutive week in positive territory
Blue Origin’s rocket failure sent space sector stocks tumbling, with AST SpaceMobile and Rocket Lab retreating
SentinelOne and Gap led decliners, plunging approximately 20% and 16% on disappointing guidance

Dell Technologies delivered a stunning quarterly performance on Thursday, propelling its stock 38% higher during Friday’s premarket session. The technology giant announced first-quarter revenue reaching $43.8 billion, representing an 88% increase from the prior-year period.

The most remarkable figure came from AI server sales, which exploded by 757% year-over-year. Dell simultaneously elevated its fiscal 2027 annual outlook, now projecting revenue in the range of $165 billion to $169 billion. This projection significantly exceeds the $142 billion consensus estimate from Wall Street analysts.

Broad Tech Sector Gains Follow Dell’s Performance

Dell’s impressive numbers created a ripple effect throughout the technology sector. Hewlett Packard Enterprise experienced gains exceeding 19%, while NetApp advanced more than 15% following its own earnings surprise. International Business Machines saw a 5.5% increase, and Super Micro Computer climbed 9.2%.

Dell Technologies Inc., DELL

NetApp delivered adjusted earnings of $2.43 per share against revenue of $1.95 billion. The storage solutions provider highlighted robust demand for its premium all-flash storage offerings, which are experiencing heightened adoption due to AI infrastructure requirements.

Okta advanced 7.8% after disclosing revenue of $765 million, an 11% year-over-year improvement. PagerDuty surged 13% following an earnings beat, the announcement of new leadership, and a $100 million stock repurchase program.

The S&P 500 remains positioned to extend its winning streak to nine straight weeks. This sustained momentum has been predominantly fueled by strong AI-related financial results throughout the technology industry.

Space Industry Stocks Retreat Following Launch Failure

While tech celebrated, the space sector faced challenges. Aerospace stocks declined significantly after a Blue Origin launch vehicle exploded during a Thursday evening mission.

AST SpaceMobile retreated 14% while Rocket Lab declined 5.6% in premarket activity. Both companies had experienced nearly 90% gains during the previous month, driven by enthusiasm surrounding SpaceX’s anticipated public offering.

Among the session’s biggest decliners, SentinelOne plummeted nearly 20% after reporting revenue of $276.66 million, falling short of analyst projections. The cybersecurity firm also indicated forthcoming workforce reductions.

Gap tumbled 15.8% following disappointing sales performance across its Old Navy and Banana Republic divisions. The apparel retailer reduced its annual net sales growth projection to a range of 1% to 2%.

American Eagle Outfitters declined 11.3% despite surpassing earnings and revenue expectations. Comparable sales for its flagship brand decreased 2%, contrasting with forecasts for a 3% increase.

Elastic slipped 7.3% after providing conservative near-term guidance, even as fourth-quarter revenue climbed 16% to reach $451 million.

Friday’s trading activity highlights the market’s bifurcation, where robust AI-driven results are elevating select technology companies while retailers and cybersecurity players encounter resistance.

Dell’s midpoint guidance for full-year adjusted earnings of $17.90 per share substantially exceeds the $13.12 analyst consensus that preceded the announcement.

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