Shares of Dell Technologies soared 22.2 per cent, hitting a record high, after the company raised its full-year financial forecasts on the back of strong demand for artificial intelligence (AI)-powered servers.
Dell’s second-quarter revenue and earnings per share beat analyst estimates, with servers and networking revenue rising 11 per cent from the first quarter to $4.27 billion. Dell said the growth was driven by higher demand for AI-optimized servers, which accounted for 20 per cent of AI orders in the quarter.
Analysts at JPMorgan Chase, Credit Suisse, and Evercore ISI all raised their price targets for Dell’s shares following the report, citing the company’s position to benefit from the growing demand for AI.
The median price target for Dell’s shares rose to $68 on Friday from $56 on Aug. 1, according to Refinitiv data.
The strong earnings report and positive analyst reaction sent Dell’s shares to their highest level ever. The stock closed at $68.75, up more than 70 per cent for the year-to-date.
The sources for this piece include an article in Reuters.