Dell reported Q1 results that beat analysts\u2019 expectations by a wide margin, and raised its full-year forecast.<\/p>\n
The strong results were driven by red-hot demand for Dell\u2019s AI-optimized servers.<\/p>\n
Stocktwits sentiment for DELL shifted to \u2018extremely bullish\u2019 from \u2018bullish.\u2019<\/p>\n
Dell Technologies’ stock surged 40% in early premarket trading on Friday after the company delivered first-quarter results that handily topped Wall Street expectations, driven by robust growth in AI server sales, and significantly raised its full-year outlook.<\/p>\n
The blowout report triggered upbeat commentary from several analysts and retail investors. \u201cBeats by the widest margin in Dell’s history as a public company. What an absolute blowout like I have never seen before,\u201d Patrick Moorhead, chief analyst at Moor Insights, said on X.<\/p>\n
See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox<\/a><\/p>\n \u201c$DELL with a monster quarter. 757% AI Server Sales Growth and it beat EPS by $2.00,\u201d said The Futurum Group CEO Daniel Newman. \u201cEnterprise and Neocloud customers. Not hyperscalers. AI concentration narrative around Capex is overhyped. AI is proliferating at breakneck pace. Dell is a great proof point.\u201d<\/p>\n Gary Black, managing partner at The Future Fund, highlighted Dell’s messaging that the strong AI server demand is expected to continue through the end of 2026. \u201cFY\u201927 and FY28-30 ests (estimates) are likely to be revised sharply higher and combined with DELL\u2019s relatively high short interest of 7.2%, is likely to push DELL to new all-time highs,\u201d he wrote on X.<\/p>\n DELL\u2019s Q1 Recap <\/p>\n Dell\u2019s fiscal first-quarter revenue jumped<\/a> 88% to $43.84 billion, beating analysts’ estimate of $35.74 billion. Sales were boosted by revenue from the infrastructure solutions group, which nearly tripled to $29 billion. More than a third of the total revenue, $16.1 billion, came from sales of AI-optimized servers, with that revenue jumping 757% year-over-year.<\/p>\n Dell\u2019s adjusted profit came in at $4.86 per share, also sharply higher than the $2.96 target.<\/p>\n Consequently, Dell raised its full-year revenue forecast to a $165 billion to $169 billion range, up from a prior range of $138 billion and $142 billion. It also lifted its adjusted earnings guidance to $17.90 per share at the midpoint, from $12.90.<\/p>\n The strong report comes a day after Dell announced it had secured a $9.7 billion defense contract, part of an effort to restructure the Defense Department\u2019s software- and cloud-based communication and collaboration systems.<\/p>\n Retail, Analyst View On DELL <\/p>\n On Stocktwits, DELL was among the top trending stocks early Friday. The retail sentiment shifted to \u2018extremely bullish\u2019 from \u2018bullish\u2019 the previous day and 24-hour message volume rose over 1,200%. Although traders welcomed Dell\u2019s strong report, some were surprised by the sheer magnitude of the stock\u2019s rally.<\/p>\n \u201c$DELL this is absolutely insane. If this isn’t a bubble then what is?\u201d remarked<\/a> a trader. Another wrote<\/a> that the markets \u201chave completely decoupled from reality,\u201d and a third one said<\/a> the rally reminded them of the AI-led gains in Oracle last year.<\/p>\n Before Dell issued results, 17 of 26 analysts had a \u2018Buy\u2019 or higher rating on the stock, seven had a \u2018Hold\u2019 rating, and two had a \u2018Sell\u2019 rating, according to Koyfin. Their average price target was 220.26, sharply lower than the stock\u2019s $317.05 close on Thursday.<\/p>\n \u201cWe see this as evidence of Dell’s improving competitive position in AI servers and significant AI strength rather than a one-off result,\u201d CFRA Research analysts said in an investor note, following the results announcement.<\/p>\n \u201cWe expect AI server revenue of $60B in FY27, up from the prior $50B view, as the company capitalizes on enterprise AI adoption and the commercial PC refresh cycle driven by AI-capable Windows 11 upgrades.\u201d<\/p>\n As of its last close, DELL stock had risen over 150% year-to-date.<\/p>\n For updates and corrections, email newsroom[at]stocktwits[dot]com.<\/p>\n Read Next: Michael Burry Calls Adobe A \u2018Fat Pitch\u2019 In Latest Saas Analysis \u2013 Backs Firefly And AI Tie-Ups With OpenAI, Google<\/a><\/p>\n Yuvraj Malik has no position in any of the stocks mentioned in this article. StockTwits’ news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy<\/a>. This article was originally published on StockTwits<\/a>.<\/p>\n Related:<\/p>\n","protected":false},"excerpt":{"rendered":"Dell reported Q1 results that beat analysts\u2019 expectations by a wide margin, and raised its full-year forecast. 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