Dell Stock Jumped 15% Last Week. Here's Why This Top AI Stock Is Still a Buy

DELL posted a 15% rally last week after reporting revenue growth of 58% to $47 billion, powered by surging demand for AI infrastructure. AI-optimized server sales doubled year-over-year to $16.4 billion, underscoring the company's position in the data center buildout fueling the generative AI wave.

Operating income jumped 160% and net income climbed 189%, reflecting both top-line strength and expanding margins. Management raised full-year guidance, now projecting 69% revenue growth and 148% earnings growth. At current levels, DELL trades at 20 times forward earnings despite triple-digit profit expansion.

The server momentum marks a sharp acceleration from prior quarters, driven by hyperscaler and enterprise spending on GPU-dense systems required for large language model training and inference workloads. With AI infrastructure budgets showing no signs of cooling, DELL's exposure to this buildout cycle remains a key bull case.