Dell raises annual revenue forecast to $165 billion to $169 billion and fiscal 2027 AI server revenue target to about $60 billion, driven by continued customer spending on AI infrastructure.

Dell Technologies raised its annual revenue forecast to $165 billion to $169 billion from an earlier outlook of $138 billion to $142 billion, and lifted its fiscal 2027 AI server revenue target to about $60 billion from $50 billion.

First-quarter revenue rose 88% to $43.84 billion, exceeding analyst expectations of $35.43 billion. Dell has become a major supplier of Nvidia-powered servers used in large data centers, benefiting from cloud and enterprise customers building AI capacity.

Shares jumped nearly 40% in premarket trading after the update. The stock gains prompted several brokerages to raise their price targets.