Why Is Dell Technologies Stock Blasting Off?

Dell Technologies Inc. DELL shares are skyrocketing on Friday.

Over the last one year, shares of the company gained over 200%, significantly outperforming the broader S&P 500’s return of around 30%.

The company teamed up with Subaru Corporation to help improve driver safety through the powerful combination of AI and high-performance storage.

This apart, Dell reported quarterly earnings of $2.20 per share which beat the analyst consensus estimate of $1.73 by 27.17%, yesterday. 

Quarterly sales clocked in at $22.3 billion, beating the analyst consensus estimate of $22.16 billion. Operating income soared 25% to $1.491 billion.

The company’s Infrastructure Solutions Group (ISG) delivered fourth-quarter revenue of $9.3 billion, down 6% year over year. 

Client Solutions Group (CSG) delivered fourth-quarter revenue of $11.7 billion, down 12% year over year.

Dell highlighted increasing demand for its AI servers and reported servers and networking revenue of $4.9 billion, with sequential growth driven primarily by AI-optimized servers.

The company also announced a 20% increase in annual cash dividend to $1.78 per common share with $0.445 per common share for the first quarterly distribution payable on May 3 to shareholders of record as of April 23.

Price Action: DELL shares are trading higher by 29.60% to $122.65 on the last check Friday. 

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