Dell Stock Just Had Its Best Week Since 2024. The Odds of Another Surge Are High.

Dell Technologies (DELL) just delivered one of its strongest trading weeks in more than two years. DELL stock surged roughly 24% last week, adding fresh momentum to what has already been a powerful year-to-date (YTD) rally. A large portion of the gains came last Friday, when shares jumped double digits after U.S. President Donald Trump publicly praised the company during a White House event.

While the political endorsement grabbed headlines, it was hardly the only catalyst behind the move. Investors have been steadily warming to Dell’s positioning in the artificial intelligence (AI) infrastructure boom, particularly its rapidly expanding AI server business. Demand for AI-optimized systems has been surging as hyperscalers, enterprises, and specialized AI cloud providers race to build out data-center capacity. Dell has emerged as one of the key hardware beneficiaries of that spending wave.

After last week’s rally, however, the key question for investors is whether DELL stock can climb even higher from here. Is this just a sentiment-driven spike amplified by a headline catalyst, or does the underlying AI server boom provide a durable foundation for further upside? Let’s take a closer look.

About Dell Technologies Stock

Dell Technologies is a leading U.S. multinational technology company, specializing in computers, servers, storage, and AI solutions. Formed by the 2016 merger of Dell and EMC, the firm is a key player in digital infrastructure, providing products for consumers and enterprises, including Alienware gaming PCs and PowerEdge servers. Its market capitalization currently stands at $160 billion.

Shares of the tech hardware maker have rallied 92% YTD, fueled primarily by a boom in demand for its servers from AI companies. Dell’s rally began after it reported blowout fourth-quarter results and issued guidance for the current fiscal year that smashed Wall Street’s expectations.

Why Dell Stock Just Posted Its Best Week Since February 2024

Dell has been among the top-performing stocks in the S&P 500 ($SPX) this year, and Dell shares just posted their strongest weekly advance since February 2024. The stock rallied roughly 24% in the week ended May 8, boosted by a number of catalysts. 

DELL stock popped more than 13% last Friday after U.S. President Donald Trump made remarks endorsing the PC and server company. At a Mother’s Day event at the White House, Trump thanked Michael and Susan Dell and urged Americans to buy Dell computers to support the domestic industry. “Go out and buy a Dell! They’re great,” Trump said. The Dell family drew praise from Trump for their $6.25 billion contribution to the Invest America initiative — also known as the Trump Accounts — which aims to provide $1,000 to children born between 2025 and 2028.

Another jump in DELL stock that helped drive such a strong weekly gain came last Wednesday. Shares jumped over 10% after Mizuho analyst Vijay Rakesh lifted his price target to $260 from $215, pointing to growing enterprise demand tied to AI infrastructure. On the same day, TotalEnergies (TTE) revealed it had signed a contract with Dell and Nvidia (NVDA) to design and deploy Pangea 5, its next-generation supercomputer. However, Dell shares gave back some of those gains in the following trading session, falling alongside the broader market.

Can Dell Surge Again After Q1 Earnings?

As Dell gears up to report its Q1 results in the final week of May, investors may be wondering whether the stock can replicate the post-earnings surge it delivered in late February. At the time, shares surged nearly 22% after the company delivered upbeat Q4 results and issued AI server sales guidance that smashed expectations.

The bull case for DELL stock centers on booming demand for the company's AI servers. Demand is driven by the need for complete, high-performance, liquid-cooled, and air-cooled systems to run large language models and agentic AI. Dell’s AI-optimized servers are drawing interest from compute rental firms such as CoreWeave (CRWV) and Nscale Global Holdings, along with enterprise customers and leading AI providers.

The company entered fiscal 2027 with a record AI server backlog of $43 billion, following over $64 billion in orders recorded in fiscal 2026. “The AI opportunity is transforming our company,” said Chief Operating Officer Jeff Clarke. Dell’s AI server revenue jumped 342% year-over-year (YOY) to a record $9 billion in Q4. More importantly, it accounted for roughly 27% of total revenue, and with strong demand for AI data-center infrastructure, that share is poised to increase at a solid pace. The company said it expects to generate roughly $50 billion in AI server revenue this fiscal year, representing a 103% YOY increase.

As I noted in a recent article on Intel (INTC), CEO Lip-Bu Tan has said the required CPU-to-GPU ratio has shifted to roughly 1:4 today, compared with about 1:8 in prior years. AMD (AMD) CEO Lisa Su echoed these trends regarding the CPU-to-GPU ratio during the Q1 earnings call. For Dell, that’s also a major positive, given its strong position in the traditional x86 server market.

Dell Technologies is also poised to benefit significantly from Nvidia’s Vera Rubin architecture by integrating it into the Dell AI Factory, enabling the company to deliver next-generation, high-performance AI infrastructure. As a key partner, Dell is incorporating these new GPUs, CPUs, and networking technologies to power agentic AI, large-scale training, and inference. With that, Dell’s revenue growth is likely to pick up further heading into late 2026.

Dell is scheduled to report its Q1 results on May 28. Analysts forecast that EPS will surge 112% YOY to $2.99 in Q1. Meanwhile, revenue is expected to grow roughly 51% to more than $35 billion. The Q1 execution appears largely de-risked by the record AI server backlog, so I expect Dell to easily beat on both the top and bottom lines. Moreover, considering the factors discussed above and the absence of any signs of an AI demand slowdown so far, I would not be surprised if the company raises its full-year AI server revenue guidance. All told, the odds of another post-earnings surge in DELL stock appear relatively high.

What Do Analysts Expect for DELL Stock?

Wall Street analysts are largely bullish on DELL stock, as indicated by the consensus “Moderate Buy” rating. Of the 25 analysts covering the stock, 15 rate it as a “Strong Buy,” two issue a “Moderate Buy” rating, seven recommend a “Hold,” and one analyst has a “Strong Sell” rating.

Unsurprisingly, DELL now trades above the average price target of $191.95. However, the Street-high estimate of $300 implies potential upside of 22% from current levels.