Shares of Dell have roughly quadrupled in price this year, with Lenovo's earnings report helping to drive the latest bout of momentum for the PC and server maker
Dell's stock has essentially quadrupled in price this year.
Dell Technologies shares have outshone many of the artificial-intelligence buildout's most talked-about stocks so far this year, and they are heading even higher on Thursday.
The server maker's stock $(DELL)$ was up 285% on the year through Wednesday's close, better than Micron Technology's $(MU)$ 219% year-to-date ascent and Advanced Micro Devices' $(AMD)$ 126% surge in the same period. Dell's "insane" outperformance was noted by Mizuho trading-desk analyst Jordan Klein, who wrote that the stock is up more than "basically almost every large-cap tech name."
Dell's stock climbed 2% on Thursday after a fellow maker of personal computers and servers reported upbeat results overseas.
That was Hong Kong's Lenovo Group (HK:992), which posted a 176% jump in adjusted profit and 43% growth in revenue for the latest quarter, attributing the momentum to growing demand for AI infrastructure.
The technology giant reported Thursday that its AI revenue, which includes AI-optimized servers and personal computers, rose 60% from the previous year and now makes up 35% of overall revenue.
Lenovo's earnings results follow those from Super Micro Computer $(SMCI)$, which offered September-quarter revenue guidance ahead of Wall Street's expectations on Tuesday. Investors were also upbeat about Super Micro's profitability improvements, as adjusted gross margin of 17.6% for the latest quarter ended up coming in at more than double the original outlook for between 8.2% and 8.4%.
Super Micro's results are "a great leading indicator for [Dell]," which reports earnings in September, Klein said in a note to clients.
He expects Dell's AI and enterprise businesses to exceed expectations, and for the company to see between 50% and 60% growth in total revenue.
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Super Micro's stock soared 19% on Wednesday following the company's earnings report on Tuesday evening, which helped to spark a rally within the broader semiconductor sector. Neocloud provider CoreWeave (CRWV) and optical-components maker Lumentum Holdings $(LITE)$ also reported better-than-expected results on Tuesday that drove further optimism around AI investment plays.
Both Super Micro and CoreWeave pointed to swelling backlogs reflecting ongoing customer demand for AI hardware. Super Micro had said in a preliminary report last month that it saw new orders reach more than $60 billion in the June quarter, helping propel its backlog to record levels for fiscal 2026.
-Britney Nguyen