Shares of Dell Technologies surged 33% after the company reported a strong quarter, helped by soaring demand for artificial intelligence (AI) servers.
The technology company benefited from a wave of spending by businesses building AI infrastructure, with orders for high-performance servers continuing to rise. Dell said demand for AI-powered systems remained strong as companies invest in data centres and computing capacity needed to run advanced AI applications.
A key factor behind the strong results was the company’s AI server business, which has become one of Dell’s fastest-growing segments. These systems, equipped with powerful AI chips, are used for training and operating generative AI models.
Higher prices for AI-focused products also helped improve revenue and profitability during the quarter. The company reported a growing backlog of AI server orders, indicating sustained customer demand in the months ahead.
The strong performance prompted Dell to raise its outlook for the year. Company executives said AI-related investments are expected to remain a major growth driver as organisations across industries continue to adopt AI technologies.
While demand for traditional personal computers remains uneven, the rapid expansion of AI services has created new opportunities for hardware makers. Dell is among the companies benefiting from this shift, alongside chip manufacturers and cloud computing providers.
Investors welcomed the results, pushing Dell’s stock sharply higher and highlighting the growing importance of AI infrastructure in the global technology market.
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