Dell Technologies Stock Price Jumps After Earnings Report

Morgan Stanley Upgrades Dell to Top Pick

Strong AI Server Sales Boost Valuation

Dell Technologies stock (NYSE: DELL) surged on Tuesday after the company reported strong earnings for the first quarter of fiscal 2025.

Key highlights of the report include:

• Revenue: $26.4 billion, up 8% year-over-year
• Earnings per share: $2.30, up 16% year-over-year
• Strong growth in AI server sales: 20% year-over-year

Analysts had expected revenue of $25.9 billion and earnings per share of $2.23, so the company exceeded expectations on both fronts.

Following the report, Morgan Stanley upgraded Dell to a "Top Pick" and raised its price target to $47. Bank of America Securities also raised its price target to $48 and reiterated its "Buy" rating on the stock. Barclays had upgraded Dell shares to "Overweight" ahead of earnings, citing the company's strong position in the AI market.

Dell's strong AI server sales are a key driver of its growth. The company is a leader in this market, and its products are used by major cloud providers and enterprise customers. The growth in AI server sales is expected to continue in the coming years, as more businesses adopt AI technologies.

Overall, Dell's first-quarter earnings report was very positive. The company exceeded expectations on both revenue and earnings, and its strong AI server sales are a key driver of its growth. Analysts are bullish on Dell's stock, and the company is expected to continue to perform well in the future.