2026 has become a golden year for Dell, the 40-year-old American technology company once famous worldwide for manufacturing and assembling personal computers sold directly to customers. Today, it is a key player in the global AI market, with its stock rising 230% since the start of the year.
Dell’s momentum has been noted since it shifted its business strategy. After exiting the stock market in 2013 to stabilize and streamline operations, it re-entered the New York Stock Exchange in 2018 and recently refocused on AI-related business.
Recently, President Donald Trump strongly endorsed Michael Dell, Dell’s founder and CEO, urging Americans to buy Dell computers and stating, “One of my sons really likes Dell laptops.”
Following Trump’s remarks, DELL stock jumped 9% during trading on Monday, 6 July, before closing up 4%.
However, while the ‘Trump effect’ influenced the stock, DELL had already performed well since early 2026. A key driver of the recent surge is the latest quarterly earnings, which exceeded expectations and marked the best growth rate since re-listing in 2018.
According to earnings reports, Dell outperformed analyst expectations in both revenue and profit, causing its stock to surge up to 39% in after-hours trading on 28 May.
Compared to estimates by LSEG, Dell’s results were as follows:
For the quarter ending 1 May, Dell’s revenue rose 88% year-on-year—the highest growth rate since its 2018 market return. The previous record was 39% growth in the January quarter.
Dell reported a net profit of $3.44 billion, or $5.24 per share, up from $965 million, or $1.37 per share, in the same period last year.
The company also noted it raised product prices earlier this year to offset increased costs caused by global memory shortages, driven by rapidly growing AI demand.
Dell’s growth is supported by its AI infrastructure business, assembling servers using Nvidia’s graphics processing units (GPUs).
AI Server revenue surged 757% year-on-year to $16.1 billion. The company raised its 2026 AI revenue target from $50 billion to $60 billion, which would represent 144% growth compared to last year if achieved.
Dell currently serves over 5,000 AI Server customers, including new-generation cloud providers (Neocloud), government agencies (Sovereign Clients), and enterprises.
Meanwhile, revenue from the Infrastructure Solutions Group (ISG), which sells servers and data center equipment, grew 181% to $29 billion, surpassing StreetAccount analysts’ expectation of $22.4 billion.
Dell stated this growth came from AI servers, traditional servers, and networking equipment, with significant demand for traditional servers from semiconductor companies and large tech firms for AI Inference and Agentic AI workloads.
However, Dell warned of potential supply constraints in the second half of the year, not only for memory but also for general-purpose CPUs, hard drives, and other key components.
The Client Solutions Group (CSG), covering enterprise PCs and peripherals, posted 17% revenue growth to $14.6 billion, beating market expectations of $12.8 billion.
Back in 1988, Michael Dell founded the company driven by his passion for building computers, embedding a core business DNA of assembling and customizing PCs for individual customers without using distributors, selling directly to customers at lower prices than competitors.
The company grew rapidly, listing on Nasdaq in 1988. However, after 2000, it faced increasing pressure from stronger competitors and the growth of electronic devices cutting into the PC market share, leading Dell to go private in 2013.
Dell returned to the stock market in 2018, this time on the New York Stock Exchange, shifting focus beyond PCs to other IT infrastructure, later moving into AI infrastructure, resulting in clear performance improvements over recent years.
Michael Dell, now 61 and CEO, has benefited greatly from Dell’s stock rise, with his wealth soaring to $228.3 billion according to Forbes, up from $97.7 billion in 2025.
He is also a major supporter of Donald Trump, having donated over $6.25 billion to Trump Accounts projects, according to Business Insider.
Additionally, regulatory filings show Donald Trump purchased $100,000 to $250,000 worth of DELL shares, likely motivating his public endorsement encouraging people to buy Dell computers.
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