Dell Jumps 9.9% After Booking $24.4 Billion in AI Server Orders
Updated
Updated · 24/7 Wall St. · Aug 14
Dell Jumps 9.9% After Booking $24.4 Billion in AI Server Orders
3 articles · Updated · 24/7 Wall St. · Aug 14
Summary
Dell shares rose 9.87% on Aug. 12 after Q1 FY2027 results showed revenue of $43.84 billion, up 87.5% year over year, and non-GAAP EPS of $4.86, far above the $2.96 consensus.
AI-optimized servers drove the beat: revenue surged 757% to $16.13 billion, and Dell booked $24.4 billion of AI orders in the quarter, leaving it with a $43 billion AI server backlog.
Management raised FY2027 guidance to $165 billion-$169 billion in revenue and now expects about $60 billion in AI-optimized server revenue, up 144% year over year.
The rally comes as hyperscaler and sovereign AI spending accelerates, though Dell's gross margin fell to 17.8% from 21.1%, showing how the AI server mix is pressuring profitability even as demand booms.