Dell stock surges on record orders for AI servers
Dell stock surged following the server maker's quarterly results on Tuesday.
What happened: Dell Technologies ( DELL ) stock surged as much as 10% in after-hours trading on Tuesday.
What's behind the move: The maker of laptops and servers raised guidance and posted record revenue and adjusted earnings for its fiscal 2027 second quarter amid a booming AI server business.
The company said it booked a record $60.9 billion in AI server orders and exited the quarter with a record $95 billion backlog.
Dell Technologies said it also saw growth in its traditional servers, networking, and storage businesses.
The company posted record revenue of $47 billion, up 58% year over year. Earnings per share came in at $6.34, up 273% from a year ago. Adjusted earnings rose 203% to $7.04 per share.
"With AI momentum accelerating and our opportunity expanding across the portfolio, we're raising our full-year FY27 revenue outlook by $25 billion to $192 billion, up nearly 70% year over year," said Jeff Clarke, CEO of Dell Technologies, in the company's earnings release.
What else you need to know: Dell has seen its orders balloon as enterprise customers adopt artificial intelligence and use AI servers locally to run agentic AI queries.
Dell stock is up more than 230% year to date. Peer Hewlett Packard Enterprise ( HPE ), which also moved up 110% since the start of the year, jumped in after-hours trading.
Ines Ferre is a senior business reporter for Yahoo Finance.
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