Dell’s AI Server Growth Tests Rally’s Staying Power
Record AI-server sales and a larger bond offering have supported Dell’s surge, while valuation leaves less room for execution setbacks.
Key takeaways
- Dell reported fiscal second-quarter revenue of $47 billion, up 58% year over year.
- AI-optimized server revenue doubled to $16.4 billion.
- A September bond offering was increased from $4 billion to $5 billion.
- Insider Monkey said 77 hedge funds held Dell at the end of Q2 2026, up from 72 in Q1.
Dell reported fiscal second-quarter 2027 revenue of $47 billion, up 58% year over year, as AI-optimized server revenue doubled to $16.4 billion. The article said the stock had gained almost 360% in 2026. As of Friday afternoon, Oct. 9, it traded at $586.06, up 2% from the previous close.
The article linked the company’s growth to demand for AI infrastructure. It also noted that Dell’s September investment-grade bond offering drew strong demand, prompting the company to increase its target from $4 billion to $5 billion.
Profitability was more modest than the sales growth: Dell posted a 9.4% trailing operating margin and a 7.52% net margin over the last 12 months, according to the article. It reported a trailing price-to-earnings multiple of 31.99 and a forward multiple of 21.32.
Insider Monkey’s tracking of 13F filings showed 77 hedge funds held Dell at the end of Q2 2026, compared with 72 in Q1. The article cautioned that the stock’s elevated valuation leaves less room for execution missteps if strong server demand does not translate into sustained earnings growth.
This article was produced with the help of AI technology. Source: Yahoo Finance
