Dell Shares Jump Nearly 5% as Investors Buy the Dip After Record AI Server Guidance

ROUND ROCK, Texas — Dell Technologies shares rose 4.68% to $559.26 in midmorning trading Tuesday, up $24.98, recovering most of Monday's slide after the company last week posted record artificial-intelligence server orders and lifted full-year targets.

The stock had closed Monday at $534.28, down 5.82% from Friday's $567.29 finish. Friday's session set a 52-week high of $567.75 after RBC Capital Markets initiated coverage at outperform with a $640 target. Tuesday's bounce left Dell still below that peak but well above the $110.22 low of the past year. The Class C shares are up more than 300% in 2026.

There was no new Dell filing on Tuesday. The tape was a rebound in AI infrastructure names after a risk-off Monday. The fundamental story is the fiscal second-quarter report released around Sept. 1. Revenue was about $47 billion, up 58% from a year earlier. Adjusted earnings were $7.04 a share, up 203%. AI server orders in the quarter were a record $60.9 billion. The AI server backlog stood at $95 billion.

Dell raised full-year revenue guidance by $25 billion, to $192 billion at the midpoint, about 70% growth. Non-GAAP earnings guidance moved to $25.50 a share, about 150% higher than the prior year and up from $17.90 previously. AI server revenue for the year was lifted by $14 billion, to $74 billion, triple last year's total. Traditional servers are expected to grow just over 100%, storage in the mid-teens and client PCs in the mid-teens.

For the current quarter, management guided revenue of $49 billion at the midpoint, up about 80%. Infrastructure Solutions Group is seen growing about 145%, with $19 billion of AI server sales. Client revenue is expected up about 15%. Non-GAAP earnings are guided to $6.50 a share.

"We've had a strong first half of the year and we expect the second half to be stronger," the company said in its results commentary. "The momentum we've seen continues and we are raising our expectations across every line of business." Chief Operating Officer Jeff Clarke told analysts Dell raised prices to cover component inflation and still increased the annual outlook. Chairman and Chief Executive Michael Dell posted: "There's an old Texas saying I may have just made up... If you keep growing EPS 200%+ y/y something good will happen."

RBC analyst David Paige argued the supply chain is the edge. "Dell's best-in-class supply chain represents a competitive moat that differentiates the company during periods of supply disruption," he said when he launched coverage.

The risk is the same one that hit memory stocks this month: if hyperscalers stretch server cycles, a $95 billion backlog can age. Dell's mix is also heavier in lower-margin AI boxes than in classic storage, which is why the company keeps repeating that gross margin excluding AI mix is holding. Tuesday's buyers treated Monday as noise around a guide that already assumes $74 billion of AI servers this fiscal year.

Dell pays a $2.52 annual dividend, about 0.45% at Tuesday's price. The next ex-dividend date is Oct. 20. Until the next print, the stock is a claim on whether $19 billion of AI servers ships this quarter and whether the $95 billion backlog converts without another demand scare. Tuesday's $559 handle says the market is willing to buy the dip. Friday's $567 high says it already paid up once this month.