With this, Dell could add more than $80 billion to its market value.

The company reported first-quarter revenue of $43.8 billion for its 2027 fiscal year, far ahead of analyst expectations of about $35 billion.

Earnings also came in stronger than expected, with adjusted earnings per share reaching $4.86 compared with forecasts of roughly $2.94. Net income climbed 256% year-on-year to $3.44 billion.

The strongest growth came from Dell’s Infrastructure Solutions Group, the division responsible for servers and data-centre systems. Revenue in that business jumped 181% to $29 billion as companies continued spending heavily on AI infrastructure.

Dell noted that AI server sales alone reached $16.1 billion during the quarter, up 757% from a year earlier.

The company also booked $24.4 billion in new AI server orders, pushing its backlog to $51.3 billion. That means Dell still has tens of billions of dollars’ worth of systems waiting to be delivered over the coming quarters.

Investors focused heavily on the growing backlog because it gives Dell unusual visibility into future demand at a time when many technology companies still find it difficult to predict how long the AI spending wave will last.

Following the results, Dell raised its full-year revenue forecast to between $165 billion and $169 billion, up from earlier guidance of $138 billion to $142 billion.

The company now expects AI server revenue to hit roughly $60 billion this year, compared with its previous estimate of $50 billion.

Adjusted earnings per share guidance also increased to $17.90 from $12.90.

Dell’s recent growth has been tied to Nvidia, whose graphics processors power most of the company’s AI systems. The results came only days after Nvidia itself reported record data-centre revenue of $75.2 billion, up 92% from a year earlier.

Together, the numbers from both companies point to aggressive spending on AI infrastructure by major technology firms and cloud providers.

Dell has benefited from orders linked to companies including Alphabet, Amazon and CoreWeave, as well as large AI data-centre projects in Europe.

The company has also expanded its partnership with Nvidia through Project Helix, an initiative designed to help businesses build and deploy AI systems more quickly.

The latest earnings added to signs that demand for enterprise AI infrastructure remains strong across the industry. Lenovo recently reported strong AI server growth, while Super Micro Computer continues expanding manufacturing for GPU-based servers.

Technology companies are expected to spend hundreds of billions of dollars on AI data centres this year as competition around AI services intensifies.

Before the recent shares surge, Dell spent years being seen mainly as a PC and storage company. Now, investors view it as one of the major suppliers benefiting from the global vision to build AI infrastructure.

Reports say the company could post operating profit of about 40.5 trillion won ($26.8 billion) for January to March.

That would be six times higher than the same period last year and close to its full-year earnings for 2025. Revenue is also seen going up by about 50%.

Some forecasts go even higher. Analysts at Citigroup expect profit to reach 51 trillion won, above the market estimate.

The profits come as memory chip prices increase. Data from TrendForce shows DRAM contract prices doubled in the first quarter compared with the previous quarter. They are expected to grow by another 58% to 63% in the second quarter.

Demand is being driven by heavy spending on artificial intelligence infrastructure. Large technology firms are investing heavily in data centres, increasing the need for high-performance memory chips. One analyst described the current market as unusually strong.

“You couldn’t ask for things to be better,” said Ko Yeongmin, analyst at Daol Investment & Securities.

Even so, investors are monitoring developments outside the company. The conflict in the Middle East has pushed up energy prices and could affect supplies of key materials used in chip production.

There are concerns that higher prices may force technology companies to slow spending on AI projects.

At the same time, there are early signs that spot prices for DRAM chips have eased in recent weeks. Higher prices for smartphones and computers are beginning to affect consumer demand.

New technology is also adding pressure. Google recently introduced a memory-saving system called TurboQuant, which could reduce the amount of memory needed for some AI workloads.

These issues have weighed on the stock as shares in Samsung Electronics have fallen about 14% since late February, when the conflict began. However, the stock is still up 50% since the start of the year.

Some experts believe the recent slowdown in prices will not last.

“We have seen a cooling (in memory chip spot prices) over the last 3-4 weeks, yes. We do believe it’s temporary,” said Tobey Gonnerman, president of Fusion Worldwide. “The demand and backlog remain strong.”

Samsung is still the world’s largest memory chipmaker, with about 40% of the DRAM market and around 35% of NAND flash. Its semiconductor division accounts for more than 70% of total profit, making it the company’s main source of earnings.

The company is also strengthening its focus on AI. It recently agreed to work with Nvidia to produce AI inference processors.

Outside chips, performance is predicted to be weaker. Analysts say Samsung’s contract chip manufacturing business is likely to remain loss-making as it competes with TSMC.

Meanwhile, profits from smartphones and display panels could fall by about half due to high component expenses and stronger competition.

There are also labour concerns at home. Workers in South Korea have called for changes to pay and bonuses and have warned of possible strike action in May.