First-quarter AI server revenue jumped 757% to $16.1 billion, crushing adjusted EPS estimates at $4.86 versus $2.94 expected.
Dell Technologies shares rallied 32% after reporting its strongest revenue growth since its 2018 public market return. AI server demand drove an 88% year-over-year revenue increase, with AI server revenue alone surging 757% to $16.1 billion.
Adjusted earnings per share reached $4.86, surpassing consensus estimates of $2.94. The company’s performance reflects accelerating adoption of AI infrastructure, particularly servers powered by Nvidia GPUs.
Analysts acknowledged the outperformance, with Morgan Stanley revising its model and price target following the results. The stock is on track for its best single-day gain on record.