Why Is Dell Stock Surging in Premarket? Exploding Demand for AI Servers

Dell Technologies shares jumped significantly in premarket trading on Wednesday, November 26, 2025, building on positive momentum from the company’s third-quarter earnings release. The stock surged to $131.65 in premarket trading as of 8:44 AM EST, representing a gain of $5.74 or 4.56% from the previous close of $125.92.

This rally follows Dell’s announcement of raised full-year revenue guidance driven by explosive demand for artificial intelligence servers, with the company now projecting approximately $25 billion in AI server sales for fiscal year 2026.

Record Q3 Revenue and $12.3 Billion in AI Server Orders Fuel Momentum

Dell Technologies delivered record-breaking third-quarter results with revenue rising 11% to $27 billion, marking its highest quarterly revenue ever. The company exceeded analyst expectations with non-GAAP earnings of $2.59 per share compared to estimates of $2.48, while GAAP earnings per share rose 39% year-over-year to $2.28. Operating cash flow reached $1.2 billion in the quarter, demonstrating strong financial performance across the business.

The company’s AI business proved to be the standout performer, with COO Jeff Clarke reporting that AI demand accelerated in the second half of the year. Dell recorded AI server orders of $12.3 billion in the third quarter alone, pushing year-to-date orders to $30 billion.

Dell’s newly appointed CFO David Kennedy increased the company’s AI shipment forecast to approximately $25 billion for the year, representing growth of more than 150% and up from the previous estimate of $20 billion.

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Dell Raises FY26 Outlook as AI Shipments Climb Toward $25 Billion

Dell substantially increased its full-year fiscal 2026 revenue guidance to a range of $111.2 billion to $112.2 billion, representing roughly 17% growth at the midpoint and exceeding both its prior forecast and analyst estimates.

For the fourth quarter, the company projects revenue between $31 billion and $32 billion with adjusted earnings per share of approximately $3.50, surpassing Street estimates of $3.31. This optimistic outlook reflects Dell’s strong positioning in the rapidly expanding AI infrastructure market.

The company attributes its success to its ability to build custom high-performance systems and quickly deploy large clusters across diverse customer bases. Dell’s comprehensive approach to AI infrastructure has enabled it to capitalize on growing enterprise demand for AI compute capacity, strengthening investor confidence in its long-term growth trajectory.

Despite the stock trading down 11% over the past year with a 52-week range of $66.25 to $168.08, the company’s AI-driven momentum has renewed optimism among analysts, with average price targets around $161.61 suggesting significant upside potential.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.