Dell Technologies saw its shares climb almost 10% in pre‑market trading on Wednesday, reflecting investor confidence after the company announced a significant boost to its annual revenue and earnings forecasts.

AI server demand fuels growth

Demand for Dell’s AI‑optimized servers has surged as technology firms and hyperscale cloud providers expand data‑center capacity to train and run large language models and other AI applications. The company reported a record $60 billion in orders and a $95 billion backlog for the quarter.

Analysts at J.P. Morgan noted that “the AI momentum spoke for itself,” while Melius Research highlighted the durability of Dell’s storage business, calling it a key driver of growth in the company’s most profitable segment.

Financial outlook upgraded

Following the strong quarter, Dell raised its full‑year revenue target to $192 billion, up from $167 billion, and lifted its adjusted earnings‑per‑share forecast to $25.50 from $17.90. The brokerage’s price target for the stock was increased to $735, the highest among analysts tracked by LSEG.

Second‑quarter revenue jumped 58% to a record $47 billion, comfortably beating Wall Street’s estimate of $44.92 billion.

Market impact

Shares of other AI server makers also rose, with Super Micro up 0.7% and Hewlett Packard Enterprise gaining 5.4% after Dell’s results. At the current share price of $465, Dell could add roughly $26 billion in market value if the gains hold.

According to LSEG data, Dell’s shares are trading at 18.12 times expected earnings over the next 12 months, compared with 12.56 for HPE and 8.06 for Super Micro.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.