Key Takeaways

• Dell’s latest earnings report is scheduled to be released Thursday afternoon, with the server maker’s stock seen potentially extending its record rally.

• Dell is expected to report another quarter of surging revenue and profits, boosted by growing AI demand.

Dell Technologies is set to report earnings after the closing bell Thursday, with the PC and server maker’s stock seen potentially extending its rally to new highs after the results.

Based on recent options pricing, traders expect Dell (DELL) shares could swing up to 10% by the end of the week. A move of that size from Friday’s record close could see shares rally to a fresh high around $326, or slip below $265, giving back some of their recent gains.

Dell shares have more than doubled in value since the start of the year, as a string of strong earnings reports from other hardware makers have fueled renewed enthusiasm for the “pick-and-shovel” companies supplying the equipment big tech companies are buying to build out AI data centers.

Why This Matters to Investors

Thursday’s results could give investors their latest data point on how AI spending is evolving after Nvidia topped estimates last week.

In a recent note to clients, Bank of America analysts wrote Dell could top first-quarter estimates and lift its sales forecast, thanks to “substantial” demand for both PCs and AI servers.

Dell is projected to report a more than 50% year-over-year jump in revenue to a record $36.18 billion, with adjusted earnings of $2.97 per share, up from $1.55 the same time a year ago, according to estimates compiled by Visible Alpha.

Analysts are largely bullish on Dell. Six of the seven analysts with current ratings calling the stock a “buy,” compared to one neutral rating, though its blown past their mean target of $223 with its recent rally.

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