What Happened?
Shares of computer hardware and IT solutions company Dell (NYSE: DELL) jumped 8.3% in the morning session after the company raised its long-term financial outlook, citing strong demand for its artificial intelligence (AI) hardware.
Dell boosted its expected annual revenue growth target to a range of 7% to 9%, up from its previous forecast of 3% to 4%. The company also nearly doubled its annual non-GAAP diluted earnings per share growth target to 15% or better. According to Dell's CEO, Michael Dell, customers showed a strong appetite for the company's AI-related products and services. Adding to the positive news, the company extended its commitment to grow its quarterly dividend by 10% or more each year through fiscal 2030. Following the announcement, analysts at firms including JPMorgan and Citi raised their price targets for the stock.
Is now the time to buy Dell? Access our full analysis report here.
What Is The Market Telling Us
Dell’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock gained 3.5% on the news that a note from JPMorgan the previous day reiterated an 'Overweight' rating, highlighting Dell's 'AI Server leadership' position. Adding to the good news, Dell announced its new PowerEdge XR8720t server. The company designed this new product to handle demanding telecom and edge workloads on a single platform, which could simplify infrastructure and prepare networks for more AI-driven tasks. The server was scheduled for a global release in the first quarter of 2026.
Dell is up 40.4% since the beginning of the year, and at $163.58 per share, has set a new 52-week high. Investors who bought $1,000 worth of Dell’s shares 5 years ago would now be looking at an investment worth $2,382.
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