Shares of Dell Technologies (NYSE:Dell) jumped on Friday, following the release of an impressive earnings report.
Amazing benefits from AI
Dell’s sales for the first quarter of fiscal 2027, which concluded on May 1, surged 88% on a year-over-year basis, reaching $43.8 billion.
The Client Solutions Group, which encompasses the sales of desktop PCs, laptops, monitors, and related gear to both consumers and businesses, saw a 17% increase in revenue to $14.6 billion.
However, the spotlight was on Dell’s Infrastructure Solutions Group. The revenue from the data center segment skyrocketed by 181% to $29 billion, thanks mainly to a staggering 757% increase in sales of AI-optimized servers, which totaled $16.1 billion.
Price hikes also contributed positively to Dell’s profit margins.
In overall terms, Dell’s adjusted net income soared by 194% to $3.2 billion. Adjusted earnings per share climbed 214% to $4.86, largely because of share repurchases.
This growth story isn’t over yet.
Looking ahead, Dell anticipates a full-year sales increase of 47%, projecting revenues of $169 billion, up from $165 billion, with adjusted earnings expected to rise 74% to $17.90.
Chief Operating Officer Jeff Clark noted, “We raise our FY27 AI server revenue forecast to $60 billion, which indicates that the AI opportunity shows no signs of slowing down.”
Dell’s robust data center sales position it among the leading AI stocks in the market today.
Should you buy Dell Technologies stock now?
If you’re considering investing in Dell Technologies, keep in mind a few things.
Our team from Motley Fool Stock Advisor has identified some stocks they believe are more promising. Apparently, Dell Technologies isn’t on that list. These ten stocks are seen as having strong potential for impressive returns in the years ahead.
For context, if you invested in Netflix back in December 2004 when it first appeared on their radar, your $1,000 investment would have grown to about $465,733! Similarly, if you invested in Nvidia in April 2005, you’d be sitting on around $1,313,467!
It’s worth noting that the stock advisor program boasts an average return of 985% compared to the S&P 500’s 211%, highlighting its strong market performance. Don’t overlook their latest top ten stock list—joining this investing community could offer valuable insights.
