Dell Technologies has delivered one of the clearest signals yet that the global artificial intelligence infrastructure boom is still accelerating, sending its shares sharply higher after the computer and server giant unveiled record quarterly results and dramatically upgraded its financial outlook.
Dell shares climbed nearly 10% in U.S. premarket trading on September 2 after the company revealed that demand for AI-optimized servers had reached unprecedented levels. But behind the stock-market excitement is an even bigger number: Dell finished the quarter with a record $95 billion backlog of AI server business, giving investors unusually strong visibility into future demand.
Dell Books $60.9 Billion in AI Server Orders in Just One Quarter
Dell said it booked a staggering $60.9 billion worth of AI server orders during its fiscal second quarter, while recognizing $16.4 billion in AI-optimized server revenue.
That AI server revenue was twice the level recorded a year earlier.
The company now expects AI-optimized server sales to reach about $74 billion for fiscal 2027, up sharply from its previous $60 billion forecast. Dell also said it has booked more than $130 billion in AI server orders over the past 12 months.
The demand is being fueled by cloud operators, technology companies, enterprises and other organizations racing to build the computing infrastructure needed to train and operate increasingly powerful AI models.
Dell’s systems incorporate high-performance processors including Nvidia chips and are being deployed by AI-focused cloud companies such as CoreWeave and Nscale. Reuters reported that Dell’s AI customer base has expanded beyond large cloud operators to include enterprises, sovereign customers and so-called neocloud providers.
Dell Suddenly Adds $25 Billion to Its Revenue Forecast
The strength of the quarter prompted Dell to make a dramatic change to its full-year expectations.
The company raised its fiscal 2027 revenue forecast from $167 billion to $192 billion—an extraordinary $25 billion increase.
Dell also increased its adjusted earnings-per-share forecast from $17.90 to $25.50.
At $192 billion, Dell’s projected annual revenue would be nearly 70% higher than the previous year, while projected adjusted EPS would rise 148%.
Wall Street had been expecting something far more modest. The Wall Street Journal reported that analysts had been looking for roughly $174 billion in full-year revenue before Dell unveiled the new forecast.
That gap helps explain why investors reacted so aggressively.
Record $47 Billion Quarter Crushes Wall Street Estimates
Dell generated $46.97 billion in second-quarter revenue, rounded to $47 billion, representing a 58% increase from the same period a year earlier.
Adjusted earnings reached $7.04 per share, up 203%.
Wall Street estimates compiled by LSEG had called for revenue of approximately $44.92 billion and adjusted earnings of $4.91 per share. Dell therefore beat expectations on both the top and bottom lines by substantial margins.
Net income reached $4.13 billion, compared with $1.16 billion a year earlier.
Dell’s Infrastructure Solutions Group, which houses its servers, networking and storage businesses, generated record revenue of $31.8 billion, up 89%, while operating income surged 225% to approximately $4.8 billion.
The Surprise: This Is Becoming More Than an AI Server Boom
The most important takeaway may be that Dell’s growth is beginning to spread beyond specialized AI machines.
Traditional server and networking revenue jumped 122% to $10.5 billion.
Storage revenue increased 26% to $4.9 billion.
Dell’s Client Solutions Group, which includes PCs, generated $15 billion in revenue, up 20%, while commercial-client sales reached a record $13.2 billion, up 22%.
That diversification matters.
AI servers generate the headlines, but storage can be particularly important to Dell’s profitability because companies building massive AI systems also need increasingly large amounts of data storage and traditional computing infrastructure.
Melius Research analysts highlighted that connection, arguing that AI-driven storage demand is strengthening one of Dell’s more profitable businesses. The firm subsequently raised its Dell price target to $735, according to Reuters.
MarketWatch reported another round of bullish analyst reactions, with several major Wall Street firms increasing their price targets following the results as they assessed continued enterprise technology spending and AI infrastructure demand.
Dell’s AI Boom Is Lifting Its Rivals Too
The earnings report also rippled through the broader AI hardware sector.
Hewlett Packard Enterprise shares climbed about 5.4% in the immediate reaction reported by Reuters, while Super Micro Computer gained roughly 0.7%.
That suggests investors interpreted Dell’s numbers not merely as company-specific strength but as additional evidence that spending on AI data centers remains resilient.
Dell itself has already been one of 2026’s standout technology stocks. Barron’s reported that shares had gained more than 230% this year before the latest post-earnings move.
The Next Test Comes After the Record Orders
Dell’s challenge now changes.
The question is no longer whether customers want AI infrastructure. A $60.9 billion quarterly order haul and $95 billion backlog provide a fairly emphatic answer.
The bigger question is how efficiently Dell can convert that backlog into shipped systems, revenue and sustainable profits while navigating tight supplies of AI accelerators, memory and other critical components.
That becomes especially important because investors are already assigning Dell a higher forward earnings valuation than some competing server manufacturers. Reuters reported a forward earnings multiple of about 18.1 times, versus roughly 12.6 times for Hewlett Packard Enterprise and 8.1 times for Super Micro Computer at the time of its report.
For now, Dell is forecasting that the momentum will continue.
For its fiscal third quarter, the company expects approximately $49 billion in revenue, an 81% year-over-year increase, with adjusted earnings of about $6.50 per share.
And that may be the most important signal of all.
The AI infrastructure race is no longer just producing spectacular forecasts for chipmakers such as Nvidia. It is increasingly reshaping the businesses that assemble the servers, storage systems and networking equipment underneath the AI economy.
Dell’s latest numbers suggest it has secured a major seat at that table.
Whether it can turn an unprecedented $95 billion backlog into equally unprecedented profits will be the next number Wall Street watches.
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