Dell rallies after raising FY27 forecast on strong AI server demand

Dell Technologies shares surged in premarket trading on Friday after the company raised its annual revenue and profit forecasts, with investors focusing on strong demand for Nvidia-powered AI servers.

Reuters reported that Dell was up nearly 40% before the opening bell after it lifted its fiscal 2027 outlook. The company now expects about $60 billion in AI server revenue in fiscal 2027, up from a prior target of about $50 billion.

Dell also raised its annual revenue forecast to $165 billion to $169 billion, from $138 billion to $142 billion. The update followed a period in which the company has been leaning heavily on demand for AI infrastructure.

In its official fiscal 2026 fourth-quarter and full-year results release earlier this year, Dell said it had closed more than $64 billion in AI-optimized server orders and entered fiscal 2027 with a record $43 billion backlog. That backdrop helped set up the latest guidance increase.

The move lifted the broader hardware trade as investors continued to reward companies tied to AI data center spending. Reuters said the stock reaction came after Dell’s latest earnings update and guidance hike.

The company’s new forecast leaves investors watching for how quickly Dell can convert its AI backlog into shipments and whether demand remains strong enough to support the higher revenue path.