Dell Stock Jumps 9% as AI Server Orders Hit Record $95 Billion Backlog

Dell shares jumped 9% on Wednesday after the company posted a blowout earnings report and sharply raised its outlook, driven almost entirely by explosive demand for AI servers.

Revenue for the fiscal second quarter, which ended July 31, grew about 58% year-over-year and beat every analyst estimate on Wall Street. Net income came in at $4.13 billion, or $6.34 per share - up from just $1.16 billion, or $1.70 per share, in the same quarter a year earlier.

The bigger story is what Dell now expects for the rest of its fiscal year. The company raised its full-year guidance to $25.50 in adjusted earnings per share on $192 billion in revenue, well above the $18.92 per share and $172.67 billion analysts had been expecting.

AI servers are driving nearly all of the upgrade. Dell now projects AI server revenue will roughly triple in fiscal 2027 to about $74 billion - a 200% increase. Just six months ago, the company was forecasting only 103% growth for the same category. The shift reflects how quickly demand from AI infrastructure buyers has accelerated even beyond what Dell itself expected earlier this year.

Underpinning that new forecast: Dell booked a record $60.9 billion in AI server orders during the quarter and exited it with an all-time high backlog of $95 billion in unfulfilled AI server orders - essentially a queue of already-committed business the company hasn't yet been able to build and ship.

The results extend a broader rally among AI infrastructure suppliers. Hewlett Packard Enterprise, a direct Dell competitor in the server market, climbed roughly 4% in the same session, while Super Micro Computer also ticked higher. For now, at least, the AI buildout that has powered much of this year's tech-sector gains shows no sign of slowing down - if anything, companies like Dell are struggling to keep up with orders rather than chase them.