Dell Technologies shares rose 2% on Thursday, extending a year-to-date rally that already tops Micron and AMD, after rival PC and server maker Lenovo posted upbeat earnings. A Mizuho analyst says Dell's run has outpaced nearly every large-cap tech stock and expects the company to beat expectations when it reports results in September.
Dell Technologies climbed 2% on Thursday after a fellow maker of personal computers and servers reported upbeat results overseas. The stock was up 285% on the year through Wednesday's close, ahead of Micron Technology's 219% year-to-date ascent and Advanced Micro Devices' 126% surge over the same period.
Mizuho trading-desk analyst Jordan Klein flagged the move. According to Klein: "basically almost every large-cap tech name", he wrote of the stock's advance.
Lenovo's earnings offer a read on Dell
Hong Kong's Lenovo Group posted a 176% jump in adjusted profit and 43% growth in revenue for its latest quarter, attributing the momentum to growing demand for AI infrastructure. The company reported 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 competes directly with Dell in PCs and servers, so its results give investors an early read on demand ahead of Dell's own report. Klein separately said Super Micro Computer's recent results serve as a strong signal for Dell, which reports earnings in September.
Klein expects Dell to beat estimates
Klein expects Dell's AI and enterprise businesses to exceed expectations, and for the company to see between 50% and 60% growth in total revenue. That view follows Super Micro's own September-quarter revenue guidance, which came in ahead of Wall Street's expectations on Tuesday.
Investors were also upbeat about Super Micro's profitability, as its adjusted gross margin of 17.6% for the latest quarter came in at more than double the original outlook of between 8.2% and 8.4%. Super Micro's stock soared 19% on Wednesday following its earnings report, helping to spark a rally across the broader semiconductor sector.
Backlogs point to more AI demand
Neocloud provider CoreWeave and optical-components maker Lumentum Holdings also reported better-than-expected results on Tuesday, driving further optimism around AI investment. Both Super Micro and CoreWeave pointed to swelling backlogs reflecting ongoing customer demand for AI hardware.
Super Micro 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. That demand signal is now feeding through to how investors price Dell ahead of its own September report.
Source: MarketWatch
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