This PC Maker's Stock Is Soaring on a Stronger Outlook, Thanks to AI

DELL +5.83% ^GSPC +0.69%

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Key Takeaways

• Dell Technologies shares popped Wednesday after the PC maker hiked its full-year outlook.

• Executives said they see Dell's AI momentum accelerating.

Dell Technologies (DELL) shares jumped Wednesday after the PC maker hiked its outlook, pointing to a boost from AI-driven demand.

The shares were up nearly 6% in recent trading, making Dell one of the best-performing stocks in the S&P 500 Wednesday. (Read our daily markets coverage here.)

Chief Operating Officer Jeff Clarke said “AI momentum is accelerating in the second half of the year, leading to record AI server orders of $12.3 billion and an unprecedented $30 billion in orders year to date.”

Dell boosted its full-year revenue forecast to $111.2 billion to $112.2 billion, up from $105 billion to $109 billion previously. It now sees adjusted earnings per share of $9.92 at the midpoint, compared to an earlier forecast of $9.55. Both the revenue and profit projections topped analysts' estimates compiled by Visible Alpha.

Why This Is Significant

Dell's big stock gains on signs of AI momentum could point to renewed confidence in the flagging AI trade, as well as Dell's place as a beneficiary of the AI boom.

Dell posted adjusted EPS of $2.59 for the third quarter, up 17% from a year ago and above analysts' forecasts, though its revenue at $27 billion was slightly below expectations.

With Wednesday's gains, shares of Dell are up about 17% for 2025.

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