DELL Stock On Track To Top $500 For First Time As AI Server Boom Gets Fresh Fuel From Lenovo, SMCI

• Lenovo reported a 43% year-on-year revenue surge to $26.94 billion in the April-June quarter, while Wall Street expected revenue of $22.44 billion, according to Fiscal.ai data.
• Morgan Stanley upgraded its broader U.S. IT hardware industry view to ‘In-Line’ from ‘Cautious’, citing evidence that the current hardware cycle is being driven by refreshes, pull-forwards and AI demand.
• According to an Investing.com report, Goldman Sachs named Dell, HPE, and NetApp as the top U.S. hardware stocks amid a surge in AI demand.

Dell Technologies Inc. (DELL) shares were on track to top $500 for the first time on Thursday, extending a recent rally as upbeat results from Chinese rival Lenovo Group (LVNGY) and strong guidance from Super Micro Computer Inc. (SMCI) fueled optimism across the AI server market.

Dell shares were up nearly 5% in Thursday’s pre-market trade, while U.S. rival Hewlett Packard Enterprise (HPE) shares gained about 4%. DELL was among the top trending tickers on Stocktwits at the time of writing. Dell shares have soared over 11% in the past month, while HPE shares have gained over 22%.

According to an Investing.com report, Goldman Sachs named Dell, HPE, and NetApp Inc. (NTAP) as the top U.S. hardware stocks amid a surge in AI demand.

Lenovo’s Best Quarter Yet, SMCI’s Blowout Guidance Boosts Sentiments

Lenovo reported a 43% year-on-year revenue surge to $26.94 billion in the April-June quarter, while Wall Street expected revenue of $22.44 billion, according to Fiscal.ai data.

Its adjusted net income soared 176% YoY to $1.1 billion, topping the $1 billion level for the first time. AI-related revenue surged 60% during this period to $9.3 billion, accounting for 35% of Lenovo’s total revenue during the quarter.

Lenovo CEO Yuanqing Yang said that AI is emerging as a clear growth engine across every business group of the company. “Building on our leadership in PCs and Smart Devices, we are proud of our rapid emergence as a global leader in AI and Infrastructure,” he added.

In AI compute, Lenovo’s AI server pipeline surged to $54 billion, up 157% sequentially, fueled by accelerating AI infrastructure demand and a rapidly expanding customer base, the company said.

SMCI, one of the leading companies in the AI server market, posted a blowout fiscal year 2027 revenue guidance. The company forecast revenue in the $65 billion-$72 billion range, beating Wall Street expectations of $53.3 billion.

What Wall Street Is Saying

Analysts at Morningstar believe that the AI server market’s growth wave is just getting started, with Dell expected to be one of the key beneficiaries of growing enterprise sales. The firm believes that this will drive “material” revenue growth for Dell.

“If AI demand is truly durable, the cyclicality of the business will be reduced, and Dell's valuation is quite attractive. Its high growth rates combined with lower cyclicality warrant a higher multiple,” the firm said in a recent note.

Morningstar also said that HPE could have further upside if it successfully integrates Juniper Networks, improves margins and revives growth in its hybrid cloud business while benefiting from rising AI server demand. The firm also highlighted HPE’s broad portfolio spanning servers, storage and networking, saying the company could be well positioned as enterprise AI inference workloads begin to scale.

According to TheFly, analysts at Morgan Stanley upgraded their broader U.S. IT hardware industry view to ‘In-Line’ from ‘Cautious’, citing evidence that the current hardware cycle is being driven by refreshes, pull-forwards and AI demand.

Morgan Stanley acknowledged that it misjudged the enterprise hardware market, while adding that it previously expected record component inflation to quickly weigh on a recovery in hardware spending.

According to Koyfin data, of the 27 analysts covering Dell, 19 have a ‘Buy’ or ‘Strong Buy’ rating, while eight recommend ‘Hold’.

For HPE, of the 22 analysts covering the stock, 13 have a ‘Buy’ or ‘Strong Buy’ rating, while nine recommend ‘Hold’.

What Retail Traders Think Of DELL, HPE Stocks

Retail sentiment on Stocktwits around Dell and HPE trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

DELL stock is up 285% year-to-date, while HPE stock is up 145%. The S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV) are up 20% over the past 12 months.

The iShares Semiconductor ETF (SOXX) is up 119% during this period, while the State Street Technology Select Sector SPDR ETF (XLK) is up 41%.

Also See: Cisco’s AI Revenue Opportunity Is ‘Immense and Growing Quickly,’ Says Morningstar — CEO Touts A ‘Networking Supercycle’

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