Dell's stock skyrockets 32% after record AI sales and Pentagon deal

Dell Technologies has seen a dramatic surge in its stock price and financial outlook. The company’s shares soared by roughly 32% on Friday, marking its best single-day performance ever. This jump follows strong earnings and a major Pentagon contract worth $9.7 billion. The tech giant reported first-quarter revenue up nearly 88% compared to last year. AI server sales alone hit $16.1 billion, a staggering 757% increase. Adjusted earnings per share came in at $4.86, far above the $2.94 analysts had predicted.

Dell also raised its full-year revenue forecast, now expecting around 50% annual growth. Its AI revenue projection was revised even higher, suggesting a 144% annual increase. Analysts have taken notice. J.P. Morgan lifted its price target from $280 to $500, admitting earlier estimates had fallen short. Susquehanna went further, upgrading Dell to Positive and setting a new target of $700—up from $138. The company’s momentum was further boosted by a $9.7 billion Pentagon contract. Under the deal, Dell will provide software solutions to support U.S. military operations.

Dell’s stock surge reflects its strong financial results and expanded growth forecasts. The Pentagon contract and soaring AI sales have reinforced investor confidence. The company now stands as a major player in both enterprise tech and defence contracts.