MW Dell's stunning 30% stock rally is giving a big boost to shares of other server makers
By Britney Nguyen
Dell's blowout earnings report is highlighting how the AI buildout is also driving demand for old-school computing
Dell's stock was headed for a record high on Friday.
Shares of Dell Technologies were rocketing higher Friday, following a stellar earnings report that echoed the strengthening opportunity for traditional computing in the artificial-intelligence buildout.
The current agentic AI wave and shift to inference, or running AI models after training, has put the spotlight back on central processing units, and Dell's results - AI-server revenue saw a nearly ninefold jump from a year earlier - show that it's "capitalizing on a new refresh opportunity on the horizon," Wedbush analyst Dan Ives wrote in a note to clients.
And investors are betting that if Dell can do it, so can its competitors, as shares of other server makers were also soaring. But that took some attention away from other recently hot AI-adjacent stocks, such as those of companies in the optical-networking business.
Dell's stock $(DELL)$ soared 29.4% in recent afternoon trading, after already hitting four straight record closes through Thursday. It has powered up 96.4% in May, which would smash its record monthly gain of 29.4% set in February.
The momentum was giving a boost to other server makers, reflecting investor enthusiasm for AI-related opportunities outside of chips that have strong growth potential.
See more: Marvell's stock has more room to rally after 'exceptional' AI demand drives a stronger growth outlook.
Hewlett Packard Enterprise's stock $(HPE)$ was climbing 12.7% in recent trading, powering toward a second straight all-time closing high. Up 48.9% so far this month, HPE's stock was also on track for its best month ever.
Shares of Super Micro Computer $(SMCI)$ were up 10.6% in recent trading, and were on track for their best month since January 2024, according to Dow Jones Market Data.
While there is some concern that Dell's results reflect a pull-forward of demand as customers look to get ahead of a run-up in prices for components across the AI industry, J.P. Morgan analyst Samik Chatterjee believes Dell's "robust pipeline/backlog across the board increases confidence into limited likelihood of pullbacks this year."
In contrast, shares optical companies were pulling back after a red-hot start to the year. Lumentum Holdings shares $(LITE)$ lost 3.2%, Corning's stock $(GLW)$ slid 3.2% and Ciena shares $(CIEN)$ shed 2.5% on Friday. All have still more than doubled so far in 2026.
Read: Optical stocks are booming. Here's how to invest in one of the most explosive areas of tech.
-Britney Nguyen
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(END) Dow Jones Newswires
May 29, 2026 14:17 ET (18:17 GMT)
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