Dell shares skyrocket 80% after Trump endorsement, add $120 bn in market cap since May 8

Shares of Dell Technologies have surged more than 80% since May 8, adding nearly $120 billion to the company’s market capitalisation, in what market experts are calling one of the sharpest rallies in recent U.S. market history.

The rally gained momentum after U.S. President Donald Trump publicly urged investors to “go out and buy a Dell” on May 8. Since then, the American technology giant has witnessed strong momentum amid blockbuster earnings, AI-driven optimism, and a major Pentagon contract win.

On Thursday, Dell Technologies shares ended 3.84% higher at $317.05 apiece on the New York Stock Exchange (NYSE), with a market value of $208 billion. The tech heavyweight hit a fresh high of $327.73 in intraday trade.

In extended trading hours, Dell shares surged as much as 39% to hit a record high of $441 after investors cheered its March quarter earnings report. At this level, the stock has rallied more than 300% from its 52-week low of $106.38 touched on June 2, 2025.

Did Trump’s endorsement boost the rally?

Dell shares have delivered stellar returns across timeframes, surging 54% in one month, 114% in three months, and 179% over the past year. Over a three-year period, the stock has skyrocketed more than 553%.

According to Vikram Kasat, Head Advisory at PL Capital, “Crazy things are happening in U.S. markets. President Trump is undefeated in the stock market.”

“On May 8, President Trump told everyone to go out and buy a Dell. The shares are up 80% in 20 days… Truly unprecedented,” he said.

On May 27, Dell Technologies, which designs, develops, and manufactures computers, data storage, servers, and networking equipment, secured a $9.7 billion contract from the U.S. Pentagon, further boosting investor confidence. The momentum accelerated after the company reported stronger-than-expected first-quarter FY27 earnings, sending the stock soaring another 30%, he said.

Stellar Q1 further fuels rally

Dell reported robust financial performance for the first quarter of fiscal year 2027, significantly ahead of Street estimates. The company posted earnings per share (EPS) of $4.86 against analysts’ expectations of $2.88, while revenue came in at $43.8 billion, sharply above the forecast of $34.8 billion, driven by strong demand for AI infrastructure and enterprise modernisation solutions.

The company’s revenue surged 88% year-on-year, while net income jumped 194% to a record $3.2 billion. Operating income rose 154% to $4.2 billion, and cash flow from operations hit an all-time high of $4.1 billion.

Dell also demonstrated strong operating leverage, with operating expenses increasing only 9% despite an 88% rise in revenue, reflecting improved efficiency and scale benefits.

“Our record Q1 performance reflects strong in-quarter demand, as well as our pace of innovation across the full stack of PCs, compute, and storage,” said Jeff Clarke, Vice Chairman and Chief Operating Officer, Dell Technologies.

“We booked $24.4 billion in AI orders and recognised $16.1 billion of AI server revenue. We’re increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing,” he added.

As per the company, Dell returned $2.1 billion to shareholders in the first quarter through share repurchases and dividends.

Analysts believe Dell’s aggressive positioning in AI infrastructure, coupled with rising enterprise demand and government contracts, has turned the company into one of the biggest beneficiaries of the ongoing AI spending boom.

For the second quarter of FY27, Dell expects revenue between $44 billion and $45 billion, implying 49% year-on-year growth at the midpoint of $44.5 billion. For the full year FY27, the company expects revenue in the range of $165 billion to $169 billion, representing 47% year-on-year growth at the midpoint of $167 billion.

Dell also expects full-year AI-Optimized Servers revenue of roughly $60 billion, up 144% year-on-year, highlighting the rapid acceleration in enterprise AI spending.

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