Dell Technologies Shares Surge 30% After Raising Full-Year Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: CNBC
- Dell Technologies Guidance Upgrade: Dell raised its full-year adjusted earnings per share forecast to $17.90, with revenue expected between $165 billion and $169 billion, significantly surpassing analyst expectations of $13.09 per share and $142.5 billion in revenue, resulting in a 30% surge in stock price.
- American Eagle Outfitters Sales Decline: American Eagle reported a 2% drop in comparable sales for Q1, missing the 3.1% growth forecast by analysts, and provided disappointing Q2 operating income guidance of $45 million to $50 million, below the $65.3 million consensus, leading to an approximately 11% decline in stock price.
- Gap Sales Outlook Downgrade: Gap lowered its full-year sales growth forecast to between 1% and 2%, down from 2% to 3%, with Q1 revenue of $3.50 billion falling short of the $3.52 billion expected by analysts, causing a 13% drop in stock price.
- Okta Performance Exceeds Expectations: Okta's stock rose 12% after it provided current-quarter and full-year revenue guidance that exceeded analyst expectations, alongside Q1 non-GAAP earnings and revenue that also surpassed consensus estimates, indicating strong business growth potential.
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Analyst Views on DELL
Wall Street analysts forecast DELL stock price to fall
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 317.050
Low
113.00
Averages
164.85
High
180.00
Current: 317.050
Low
113.00
Averages
164.85
High
180.00
About DELL
Dell Technologies Inc. is engaged in designing, developing, manufacturing, marketing, selling, and supporting a wide range of comprehensive and integrated solutions, products, and services. The Company operates through two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). Its ISG segment enables the Company’s customer’s digital transformation with solutions that address artificial intelligence (AI), machine learning, data analytics, and multi cloud environments. Its comprehensive storage portfolio includes modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage. Its CSG segment offers branded personal computers (PCs) including notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, and webcam and audio devices, as well as third-party software and peripherals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dell Technologies Shares Surge 32.8% After Blockbuster Earnings Report
- Revenue Surge: Dell Technologies reported an impressive 88% year-over-year revenue increase to $43.8 billion in Q1 FY2027, highlighting the company's strong market performance, particularly in AI-driven growth.
- Infrastructure Solutions Growth: The Infrastructure Solutions Group saw revenue skyrocket 181% to $29 billion, primarily driven by a staggering 757% increase in AI-optimized server sales, reaching $16.1 billion, indicating Dell's robust competitiveness in the data center market.
- Profit Boost: Dell's adjusted net income soared 194% to $3.2 billion, with adjusted earnings per share jumping 214% to $4.86 due to stock buybacks, showcasing the company's successful strategies in enhancing profit margins.
- Optimistic Outlook: Dell anticipates a 47% revenue growth for the full year, projecting between $165 billion and $169 billion, with adjusted earnings expected to rise 74% to $17.90, reflecting the company's sustained optimism in the AI market.
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JPMorgan Aggressively Raises Dell Price Target to $500
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- Robust AI Orders: Dell booked $24 billion in AI orders in the latest quarter, bringing total backlog to $51 billion, while raising its AI revenue outlook to $60 billion, implying a 144% year-over-year growth that will significantly boost revenue and market share.
- Medium-Term Growth Potential: Chatterjee increased Dell's valuation multiple from the high teens to 25 times, indicating confidence in Dell's sustainable growth trajectory, driven by device refreshes, infrastructure upgrades, and AI-related capacity needs.
- Support from Non-AI Business: Dell's strong performance in storage products and traditional servers, particularly with proprietary IP, further supports the company's gross margin outlook, showcasing Dell's competitive edge and profitability in the market.
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Micron Technology Stock Overbought, Market Cap Surpasses $1 Trillion for First Time
- Micron Stock Surge: Driven by insatiable demand for memory chips in AI applications, Micron's stock soared 29% this week, marking its market capitalization surpassing $1 trillion for the first time, reflecting strong market confidence in its future growth prospects.
- UBS Price Target Increase: UBS raised Micron's price target to $1,625, implying a 67% upside from Friday's close, as analysts believe the market will assign a more 'normal' valuation multiple as AI drives structural changes in the memory sector.
- Dell's Impressive Performance: Dell Technologies saw a 33% stock increase this week, achieving its largest single-day gain on Friday, with Q1 revenue of $43.84 billion exceeding analyst expectations of $35.43 billion and a year-over-year growth rate of nearly 88%, showcasing its strong position in the AI data center market.
- Ford's Investor Optimism: Ford Motor's stock rose 17% this week, with an RSI of 80, as analysts noted that optimism surrounding its battery energy storage system has boosted investor sentiment, leading to a price target increase from $17 to $20, indicating a further 15% upside potential.
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Stocks Hit Record Highs Again, Driven by Tech Gains
- Market Performance: Last week, the S&P 500 and Nasdaq Composite rose over 1% and 2%, respectively, marking the S&P 500's ninth consecutive week of gains and the Nasdaq's eighth out of the last nine weeks, reflecting strong investor confidence in the market.
- Tech Stock Surge: Snowflake's quarterly earnings exceeded expectations and included a $6 billion AI compute deal with Amazon, leading to a more than 36% single-day stock price increase, which reignited enthusiasm across the tech sector and boosted stocks like Dell and Broadcom significantly.
- Cybersecurity Stock Volatility: Zscaler's disappointing earnings report resulted in its worst single-day performance, negatively impacting peers CrowdStrike and Palo Alto Networks; however, Okta's strong earnings report led to a 30% stock price jump, indicating ongoing demand in the cybersecurity sector.
- Middle East Situation's Market Impact: Despite mixed signals from the Middle East, rumors of peace progress between Iran and the U.S. spurred market gains, although the White House dismissed the reports, investor optimism still supported the stock market's upward trajectory.
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Nvidia and Microsoft to Launch First Windows OS Computers with Nvidia Chips
- First Windows Computers: Nvidia and Microsoft are expected to debut the first Windows OS computers using Nvidia chips as the main processor next week, marking a significant collaboration that could drive demand for high-performance computing devices.
- Brand Collaboration: The new computers will include products from Microsoft's Surface brand as well as other manufacturers like Dell, which will help expand Nvidia's market penetration and enhance its position in a competitive landscape.
- Market Reaction: Although Reuters could not immediately verify the report, if true, it may generate strong consumer and enterprise interest in the new high-performance computers, potentially boosting sales of related products.
- Industry Impact: This launch could not only change consumer perceptions of Windows computers but also prompt other manufacturers to accelerate the adoption of Nvidia's technology, further solidifying its leadership in AI and graphics processing.
See More
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- Contract Awarded: Dell Technologies has secured a five-year, $10 billion contract from the U.S. Department of Defense to provide software solutions, including Microsoft 365, which is expected to save the agency $422 million annually, enhancing the company's competitive position in the government sector.
- Stock Surge: After climbing for the seventh consecutive trading session, Dell's stock reached an all-time high of $429.15 before closing at $420.91, reflecting a 32.76% increase, indicating strong investor enthusiasm following the company's robust earnings performance.
- Strong Financial Performance: In the first quarter, Dell reported a staggering 256% increase in net income to $3.4 billion, with net revenues rising 88% to $43.8 billion year-over-year, showcasing the company's strong growth momentum and profitability in the market.
- Market Outlook: While Dell Technologies demonstrates significant investment potential, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, prompting investors to carefully assess market dynamics.
See More
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- Revenue Surge: Dell Technologies reported an impressive 88% year-over-year revenue increase to $43.8 billion in Q1 FY2027, highlighting the company's strong market performance, particularly in AI-driven growth.
- Infrastructure Solutions Growth: The Infrastructure Solutions Group saw revenue skyrocket 181% to $29 billion, primarily driven by a staggering 757% increase in AI-optimized server sales, reaching $16.1 billion, indicating Dell's robust competitiveness in the data center market.
- Profit Boost: Dell's adjusted net income soared 194% to $3.2 billion, with adjusted earnings per share jumping 214% to $4.86 due to stock buybacks, showcasing the company's successful strategies in enhancing profit margins.
- Optimistic Outlook: Dell anticipates a 47% revenue growth for the full year, projecting between $165 billion and $169 billion, with adjusted earnings expected to rise 74% to $17.90, reflecting the company's sustained optimism in the AI market.
See More
JPMorgan Aggressively Raises Dell Price Target to $500
- Significant Target Increase: JPMorgan analyst Samik Chatterjee raised Dell's price target from $280 to $500, a 144% increase, reflecting strong confidence in Dell's future earnings potential, particularly amid a surge in AI orders.
- Robust AI Orders: Dell booked $24 billion in AI orders in the latest quarter, bringing total backlog to $51 billion, while raising its AI revenue outlook to $60 billion, implying a 144% year-over-year growth that will significantly boost revenue and market share.
- Medium-Term Growth Potential: Chatterjee increased Dell's valuation multiple from the high teens to 25 times, indicating confidence in Dell's sustainable growth trajectory, driven by device refreshes, infrastructure upgrades, and AI-related capacity needs.
- Support from Non-AI Business: Dell's strong performance in storage products and traditional servers, particularly with proprietary IP, further supports the company's gross margin outlook, showcasing Dell's competitive edge and profitability in the market.
See More
Micron Technology Stock Overbought, Market Cap Surpasses $1 Trillion for First Time
- Micron Stock Surge: Driven by insatiable demand for memory chips in AI applications, Micron's stock soared 29% this week, marking its market capitalization surpassing $1 trillion for the first time, reflecting strong market confidence in its future growth prospects.
- UBS Price Target Increase: UBS raised Micron's price target to $1,625, implying a 67% upside from Friday's close, as analysts believe the market will assign a more 'normal' valuation multiple as AI drives structural changes in the memory sector.
- Dell's Impressive Performance: Dell Technologies saw a 33% stock increase this week, achieving its largest single-day gain on Friday, with Q1 revenue of $43.84 billion exceeding analyst expectations of $35.43 billion and a year-over-year growth rate of nearly 88%, showcasing its strong position in the AI data center market.
- Ford's Investor Optimism: Ford Motor's stock rose 17% this week, with an RSI of 80, as analysts noted that optimism surrounding its battery energy storage system has boosted investor sentiment, leading to a price target increase from $17 to $20, indicating a further 15% upside potential.
See More
Stocks Hit Record Highs Again, Driven by Tech Gains
- Market Performance: Last week, the S&P 500 and Nasdaq Composite rose over 1% and 2%, respectively, marking the S&P 500's ninth consecutive week of gains and the Nasdaq's eighth out of the last nine weeks, reflecting strong investor confidence in the market.
- Tech Stock Surge: Snowflake's quarterly earnings exceeded expectations and included a $6 billion AI compute deal with Amazon, leading to a more than 36% single-day stock price increase, which reignited enthusiasm across the tech sector and boosted stocks like Dell and Broadcom significantly.
- Cybersecurity Stock Volatility: Zscaler's disappointing earnings report resulted in its worst single-day performance, negatively impacting peers CrowdStrike and Palo Alto Networks; however, Okta's strong earnings report led to a 30% stock price jump, indicating ongoing demand in the cybersecurity sector.
- Middle East Situation's Market Impact: Despite mixed signals from the Middle East, rumors of peace progress between Iran and the U.S. spurred market gains, although the White House dismissed the reports, investor optimism still supported the stock market's upward trajectory.
See More
Nvidia and Microsoft to Launch First Windows OS Computers with Nvidia Chips
- First Windows Computers: Nvidia and Microsoft are expected to debut the first Windows OS computers using Nvidia chips as the main processor next week, marking a significant collaboration that could drive demand for high-performance computing devices.
- Brand Collaboration: The new computers will include products from Microsoft's Surface brand as well as other manufacturers like Dell, which will help expand Nvidia's market penetration and enhance its position in a competitive landscape.
- Market Reaction: Although Reuters could not immediately verify the report, if true, it may generate strong consumer and enterprise interest in the new high-performance computers, potentially boosting sales of related products.
- Industry Impact: This launch could not only change consumer perceptions of Windows computers but also prompt other manufacturers to accelerate the adoption of Nvidia's technology, further solidifying its leadership in AI and graphics processing.
See More
Dell Technologies Secures $10 Billion Contract, Stock Hits All-Time High
- Contract Awarded: Dell Technologies has secured a five-year, $10 billion contract from the U.S. Department of Defense to provide software solutions, including Microsoft 365, which is expected to save the agency $422 million annually, enhancing the company's competitive position in the government sector.
- Stock Surge: After climbing for the seventh consecutive trading session, Dell's stock reached an all-time high of $429.15 before closing at $420.91, reflecting a 32.76% increase, indicating strong investor enthusiasm following the company's robust earnings performance.
- Strong Financial Performance: In the first quarter, Dell reported a staggering 256% increase in net income to $3.4 billion, with net revenues rising 88% to $43.8 billion year-over-year, showcasing the company's strong growth momentum and profitability in the market.
- Market Outlook: While Dell Technologies demonstrates significant investment potential, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, prompting investors to carefully assess market dynamics.
See More
