Shares of Dell Technologies surged 32% on Friday, marking their best day ever, after the company reported its fastest revenue growth since going public in 2018.
The first quarter earnings, released after Thursday’s market close, revealed a surge in artificial intelligence related demand for its servers, which incorporate GPUs from companies like Nvidia.
Dell’s quarterly revenue soared nearly 88% year over year, with AI server revenue skyrocketing 757% to $16.1 billion. Adjusted earnings per share reached $4.86, well above the expected $2.94.
Reacting to the results, analysts expressed surprise. Morgan Stanley acknowledged they had underestimated Dell’s performance, stating, “We got this one wrong, and our model/PT are under review.”
They described the quarter as one of the most impressive they’ve seen in hardware, especially considering current market conditions.
Source (CNBC)
