Dell Shares Rocket 32%, Head for Best Day Ever on AI Surge
Dell Technologies shares skyrocketed 32% and are on track for the company's best day ever after first-quarter earnings. AI server revenue jumped 757% year-over-year to $16.1 billion, driving the fastest revenue growth since 2018 and beating estimates on adjusted EPS of $4.86.
Dell posted its fastest pace of revenue growth for any period since returning to the public market in 2018. The company reported those first-quarter earnings after the bell on Thursday.
We got this one wrong, and our model/PT are under review.
Quarterly revenue soared nearly 88% year over year. AI server revenue alone increased 757% from a year earlier to $16.1 billion.
Adjusted earnings per share came in at $4.86. That beat expectations of $2.94.
Dell saw a flood of artificial intelligence-related demand for its servers. Those servers contain graphics processing units from companies like Nvidia.
one of the most impressive quarters we've seen in our time covering Hardware, especially in the context of what is happening across the component universe.
On Friday, analysts reacted to the results. Morgan Stanley wrote that while they expected a clean beat and raise this quarter, they are "eating our humble pie" off the back of Dell's results.
The analysts continued that "We got this one wrong, and our model/PT are under review." They described the quarter as "one of the most impressive quarters we've seen in our time covering Hardware, especially in the context of what is happening across the component universe."
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