Dell Technologies Inc. shares soared 5.17% in pre-market trading on Tuesday, driven by robust demand for AI servers and a bullish analyst upgrade.

The stock gained momentum after Citi raised its price target on Dell to $515 from $475, maintaining a Buy rating and citing strong AI demand growth prospects. The upgrade reflects growing confidence in Dell's ability to capture share in the rapidly expanding AI infrastructure market, as enterprise adoption of artificial intelligence transitions from pilot testing to large-scale deployment. Dell has positioned itself as a preferred partner for enterprises building private AI clouds in their data centers, securing significant allocations of next-generation accelerators.

Adding to the positive sentiment, Super Micro Computer's preliminary fourth-quarter results showed gross margins nearly doubling and record backlog orders exceeding $60 billion, sending a bullish signal across the AI server space. Meanwhile, global server shipments are expected to surpass 5 million units for the first time in the third quarter, with Dell, Super Micro, and HPE forecast to see a combined 5.8% rebound. Dell also made headlines alongside Nvidia for backing AI cloud startup Volta at a $2.4 billion valuation, further underscoring its commitment to the AI ecosystem.