TLDR
- Dell Technologies (DELL) stock rose about 5% in premarket trading on Wednesday, to roughly $485 to $487.
- Super Micro (SMCI) raised its fiscal Q1 revenue forecast to $18.5 billion to $19.5 billion, up from $14.5 billion to $15.5 billion.
- Super Micro also lifted its gross margin outlook to 12% to 12.5%.
- Dell ended its latest quarter with a record $95 billion AI server backlog.
- Wall Street has a Moderate Buy rating on DELL, with an average price target of $596.75.
Dell Technologies (DELL) stock rose about 5% in premarket trading on Wednesday, October 21. It was priced near $485 to $487.
The move followed news from Super Micro Computer (SMCI), which raised its revenue forecast after Tuesday’s close. Dell and Super Micro both sell AI servers, so traders took notice.
Dell outpaced the broader market. The S&P 500 was up about 0.2% and the Nasdaq about 0.6%, so not a bad way to start a Wednesday.
What Super Micro Said
Super Micro now expects fiscal first quarter revenue of $18.5 billion to $19.5 billion. Its earlier range was $14.5 billion to $15.5 billion.
Analysts had expected about $15 billion. The company said stronger demand for AI platforms drove the change.
Super Micro also lifted its gross margin outlook to 12% to 12.5%. The prior range was 10.4% to 10.8%.
The guidance covers only Super Micro’s business. Dell’s results will depend on its own orders, product mix, pricing and costs.
Dell’s AI Business and Analyst Views
Dell reported a record $60.9 billion in AI orders in its second quarter of fiscal 2027. It shipped $16.4 billion in AI server revenue.
The company ended that quarter with a record $95 billion backlog. Investors watch that number closely.
Dell stock is up about 271% so far this year. The S&P 500 has gained roughly 12% over the same period.
Last week, Barclays analyst Tim Long cut Dell to Equalweight from Overweight. He lowered his price target to $574 from $603.
Long expects growth to slow over the next two years as memory prices normalize. He still likes the AI server business and sees that revenue tripling to $75 billion this fiscal year.
Wall Street holds a Moderate Buy rating on Dell, with 14 Buys and seven Holds. The average price target is $596.75, which implies about 29% upside from the last close.
Dell announced AI partnerships in October, including ones with Honeywell and Accenture. It also introduced agentic AI workstation work with Nvidia and Microsoft.
Silver Lake-affiliated entities filed Form 4 disclosures for transactions dated October 15. Those filings were not tied to Wednesday’s move.
On Wednesday, Dell stock was up about 5% in premarket trading, with Super Micro’s higher forecast as the main catalyst.
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