Shares of Hewlett Packard Enterprise Co. jumped 18% in premarket trading, catching a tailwind from rival Dell Technologies Inc. after Dell delivered a blowout first quarter.

The catalyst was Dell’s stunning fiscal first-quarter print, reported after Thursday’s close.

Dell posted revenue of $43.84 billion, obliterating the consensus estimate of $35.45 billion, according to Benzinga Pro.

Adjusted EPS came in at $4.86, nearly double the Street’s estimate of $2.94. Total revenue surged 88% year-over-year, with the headline grabber being AI-optimized server revenue of $16.1 billion — up a staggering 757% from the prior-year period.

‘The AI Opportunity Shows No Signs of Slowing’

Dell COO Jeff Clarke summed up the demand environment bluntly: “We booked $24.4 billion in AI orders and recognized $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.”

That kind of commentary lifts sentiment for Hewlett Packard Enterprise, which competes in AI servers, high-performance computing, and enterprise networking — overlapping markets where Dell’s results serve as a leading demand indicator.

When hyperscaler and enterprise AI capex is flowing this aggressively, the entire server ecosystem tends to benefit.

Dell also raised full-year revenue guidance to a range of $165 billion to $169 billion, well above the prior outlook of $138 billion to $142 billion, and lifted adjusted EPS guidance to $17.90 from $12.90.