Dell Technologies shares surged 32.76% on Friday, marking the company's best single-day performance since returning to the public market in 2018, and narrowly surpassing its previous record from March 1, 2024, when the stock rose 31.6% [1]. This dramatic rally followed the release of Dell's first-quarter earnings, which revealed a significant increase in artificial intelligence-related demand for its servers, powered by graphics processing units from companies such as Nvidia [1].
Quarterly revenue jumped nearly 88% year over year, with AI server revenue alone skyrocketing 757% to $16.1 billion compared to the previous year [1]. Adjusted earnings per share reached $4.86, far exceeding analyst expectations of $2.94 [1]. Ben Reitzes, head of technology research at Melius, commented, "They beat every line in the model, so this wasn't just AI, it was great execution" [1]. Morgan Stanley analysts admitted they underestimated Dell's performance, stating, "We got this one wrong, and our model/PT are under review," and described the quarter as "one of the most impressive" in their hardware coverage experience [1].
The stock's momentum has been strong, with shares up 234% in 2026 and nearly tripling over the past year [1]. Dell's chairman and CEO, Michael Dell, has also strengthened ties with President Donald Trump during his second term, with government ethics filings showing the president purchased $1 million to $5 million in Dell shares on February 10, following a $6.25 billion gift from Michael and Susan Dell to fund Trump Accounts for 25 million U.S. children [1]. President Trump publicly encouraged Americans to "go out and buy a Dell" during a Mother's Day event at the White House earlier this month [1].
Additionally, Dell secured a $9.7 billion Pentagon contract on Wednesday to provide a suite of software to the U.S. military, further bolstering its business outlook [1]. The year-to-date stock chart highlights the magnitude of Dell's recent rally [1].
CONCLUSION
Dell's record-breaking quarter, driven by explosive AI server revenue growth and strong execution, has led to a historic surge in its share price. The company's robust financial performance, high-profile government contracts, and public endorsements have significantly boosted market confidence. Analysts are revising their outlooks, underscoring Dell's growing influence in the AI and hardware sectors.