Dell shares jump on forecast it will double AI server revenue
BNN Bloomberg
Shares of Dell Technologies jumped in premarket trading on Friday after the company forecast revenue from its AI server business will double in fiscal 2027, underscoring surging demand for infrastructure catering to artificial intelligence.
Investors also cheered the PC maker’s plans for a 20 per cent hike to cash dividends and an additional $10 billion share repurchase program.
Dell’s shares jumped 11 per cent in trading before the bell. Trading at $135.17, it is poised to open at its highest in over two months.
Data center equipment makers such as Dell have benefited from the rapid expansion in AI investors, with sector leaders expected to spend at least $630 billion this year.
Dell said it expects AI server revenue to grow 103 per cent to about $50 billion in fiscal 2027.
At least three Wall Street brokerages raised price targets on the stock, with J.P.Morgan expecting it to rally at least 36 per cent, from its last close, in the next one year to $165.
