Dell Technologies Q1 2027 earnings expectations

What happened: Dell Technologies (DELL) reported record Q1 2027 earnings, with revenue up 88% YoY to $43.8 billion, driven by a 757% surge in AI-optimized server revenue to $16.13 billion. The company's shares soared 33% on May 26 and another 10% on May 29, reaching record highs. Morgan Stanley, which previously had a bearish stance, admitted it was wrong and raised its price target to $448.

Market impact: The AI server boom and increased infrastructure spending pushed DELL stock higher, benefiting other companies in the AI infrastructure space like Super Micro Computer (SMCI), which gained 16%. Global IT spending is expected to hit $6.31 trillion, up 13.5% YoY, driven by data storage and computing, with AI demand set to grow.

What to watch next: On May 28, Dell will host its annual investor conference, where it may provide further guidance on its AI and infrastructure growth prospects. Additionally, investors should monitor global IT spending forecasts, with semiconductor demand and memory prices expected to climb.