Unforeseen things have been happening in US markets, and some stocks have captured investors’ attention quite like Dell Technologies. In a matter of weeks, the computer maker has gone from being a beneficiary of the artificial intelligence boom to becoming one of Wall Street’s biggest success stories of the year.
stock has surged dramatically, climbing around 80% since May 8 and adding roughly $120 billion in market value. Just in the last 1 month, the tech stock has risen as much as 101% following a powerful combination of AI-driven growth, government business and strong investor enthusiasm.
The rally gained momentum after a series of high-profile developments, including public praise from US President , a multibillion-dollar Pentagon contract, and earnings that significantly exceeded Wall Street expectations.
From Trump’s endorsement to a $9.7 billion Pentagon contract
The latest chapter in Dell’s rally began on May 8, when President Donald Trump publicly praised the company during a Mother’s Day event at the White House.
“So go out and buy a Dell, they’re great,” Trump said while speaking about the company.
Following the endorsement, Dell shares jumped 12% in a single trading session, rising from around $230 to $260.
Just 19 days later, on May 27, Dell secured another major catalyst. The US Department of Defense awarded the company a $9.7 billion contract over five years to provide software to the military.
The contract announcement came amid growing scrutiny over Trump’s financial dealings. According to periodic financial transaction reports, Trump purchased between $1 million and $5 million worth of Dell stock on February 10, months before the Pentagon contract was awarded.
The public only became aware of the stock purchase after disclosures were filed earlier this month, as required by law. In the intervening period, Trump repeatedly praised the company during public appearances.
“They make a great product,” Trump said less than two weeks after purchasing the stock.
Before receiving the Pentagon contract, the Dell family had also promoted the president’s agenda by contributing $6.25 billion in funding for so-called “Trump accounts,” the tax-advantaged savings vehicles established under the One Big Beautiful Bill Act.
AI boom powers record earnings and historic stock gains
While the Pentagon contract grabbed headlines, Dell’s report provided the strongest fundamental justification for the stock’s rally.
Shares of Dell Technologies surged 32% after the company reported its fastest revenue growth since returning to public markets in 2018. The gain marked the best single trading day in the company’s history, narrowly surpassing its previous record set on March 1, 2024, when the stock rose 31.6%.
The latest rally has pushed Dell shares up 234% in 2026 alone.
The company reported exceptionally strong results driven largely by booming demand for infrastructure. Dell said revenue for the fiscal year ending January 2027 is expected to reach approximately $167 billion, including about $60 billion from AI server sales. That compares with its earlier revenue outlook of roughly $140 billion.
Quarterly revenue surged nearly 88% year-on-year, while AI server revenue alone jumped 757% from a year earlier to $16.1 billion. Adjusted earnings per share came in at $4.86, comfortably ahead of Wall Street expectations of $2.94 per share. For the fiscal first quarter, sales climbed 88% to $43.8 billion, significantly above analysts’ average estimate of $35.5 billion.
Growth was not limited to AI products. Demand for traditional servers powered by central processing units also remained strong. Revenue from that division nearly doubled to $8.5 billion compared with the same period a year earlier.
Reflecting the strong momentum, Dell raised its annual revenue guidance to a range of $165 billion to $169 billion, up from its previous forecast of $138 billion to $142 billion.
The company also increased its outlook for AI server revenue in fiscal 2027 to approximately $60 billion from the earlier estimate of $50 billion.
The combination of explosive AI demand, strong earnings growth, upgraded guidance and a major Pentagon contract has transformed Dell into one of the biggest winners of the current AI investment cycle. For investors, the stock’s extraordinary rise highlights how rapidly companies positioned at the center of the AI infrastructure buildout are reshaping the market landscape.
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