Dell Shares Surge 9% on Doubled Revenue Forecast Fueled by AI Demand
The tech giant now projects 7-9% annual revenue growth, citing soaring demand for its artificial intelligence servers and prompting a wave of analyst upgrades.
Dell Technologies (DELL) shares jumped more than 9% on Wednesday after the company doubled its long-term revenue growth forecast, a move driven by a surge in demand for its artificial intelligence (AI) hardware. The optimistic outlook triggered a series of price target upgrades from Wall Street analysts and bolstered investor confidence in the tech giant's growth trajectory.
During its recent Securities Analyst Meeting, Dell announced it now anticipates an annual revenue growth rate of 7% to 9%, a significant increase from its previous forecast of 3% to 4%. The company also nearly doubled its long-term non-GAAP diluted EPS growth target to 15% or higher. , signaling a strong strategic pivot towards the burgeoning AI market.
The market's reaction was swift and decisive, with DELL shares advancing 9.05% on elevated trading volume. The bullish sentiment was echoed by analysts, with several prominent firms raising their price targets. , while Citi boosted its target to $175. Mizuho and Melius Research also followed suit with increased price targets of $170 and $200, respectively.
In a further move to enhance shareholder returns, . This decision, coupled with the aggressive growth forecasts, underscores the company's confidence in its ability to capitalize on the ongoing tech rally. As the demand for AI infrastructure continues to accelerate, Dell's strategic positioning and robust product portfolio appear poised to drive sustained growth in the coming years.