Dell stock has surged 230% year-to-date in 2026, driven by explosive demand for AI-optimized servers that is redefining the company’s growth trajectory and positioning it as a central player in the AI infrastructure boom.
The company reported AI server revenue of $16.1 billion in its latest quarter, a 757% increase from the same period last year, according to CNBC. That blowout performance triggered a 32% single-day rally in late May, the stock’s best day ever, as investors recognized the scale of the opportunity.
Behind the surge lies a massive backlog: Dell ended the quarter with $51.3 billion in unfilled AI server orders, according to Yahoo Finance. The company also raised its fiscal 2027 AI server revenue forecast to approximately $60 billion, up from its prior expectation of $50 billion, Reuters reported on May 28. That revision alone signals Dell’s confidence in sustained demand from cloud providers and enterprises racing to build AI infrastructure.
Dell’s total fiscal 2027 revenue guidance climbed to roughly $167 billion, crushing analyst expectations of about $142 billion, according to reporting from Bloomberg and The Economic Times. The company booked $24.4 billion in new AI orders during the quarter, underscoring the intensity of customer demand.
The AI infrastructure market has accelerated rapidly. Companies spent $37 billion on generative AI in 2025, a 3.2x year-over-year increase from $11.5 billion in 2024, according to Menlo Ventures research. That spending surge is now flowing directly to server makers like Dell, which benefit from the need to purchase and deploy the hardware that powers AI model training and inference.
Analysts have raised price targets in response. Stock Analysis reports 27 analysts covering Dell with a consensus rating of “Buy” and an average 12-month price target of $487.26, implying modest upside from current levels. However, some analysts suggest Street estimates for 2026 and 2027 may still be too conservative, according to Kavout research published in June.
Sources
- CNBC — Dell stock rally details, AI server revenue surge of 757%, stock up 234% YTD
- Yahoo Finance — AI server backlog of $51.3 billion, year-to-date stock performance
- Reuters — Dell’s raised FY2027 AI server revenue guidance to $60 billion from $50 billion
- Bloomberg — FY2027 total revenue guidance of $167 billion, AI server sales outlook
- The Economic Times — Dell’s FY2027 revenue projection crushing analyst expectations
- Menlo Ventures — Generative AI spending data: $37 billion in 2025 vs $11.5 billion in 2024
- Stock Analysis — Analyst consensus rating and 12-month price target
- Kavout — Analyst commentary on potential for upward estimate revisions
