Dell Stock Soars on AI Boom, $9.7B U.S. Gov Contract

Dell Technologies shares skyrocketed by approximately 30% in extended trading on Thursday, May 28, 2026, after the company dramatically raised its annual revenue and profit outlook. This surge continues a remarkable 53% stock rally over the preceding 30 days, cementing the firm’s status as a top beneficiary of the generative AI boom.

Consequently, the company now projects AI server revenue of roughly $60 billion for fiscal 2027, a substantial increase from prior expectations of $50 billion. It also raised its total annual revenue forecast to between $165 billion and $169 billion, sharply up from its previous range of $138 billion to $142 billion.

This bullish momentum followed a major $9.7 billion contract announcement from the US government, which has thrown its support behind the tech giant. The strong financial performance was driven by better-than-expected Q1 results, including revenue of $43.84 billion and adjusted EPS of $4.86, powered by AI-related demand and server sales.

However, Dell‘s chief operating officer Jeff Clarke acknowledged pricing pressures on a post-earnings call. He stated, “We’re repricing, it feels like, every day. And I’m sure our customers feel that pain. Unfortunately, I don’t see that changing given the world that we’re living in today where you have an inflationary environment,”.

Meanwhile, the company proceeded to post second-quarter revenue and adjusted profit per share forecasts that exceeded market estimates. This solid guidance underscores Dell‘s transformed position as a central player in the AI infrastructure landscape.

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