The stock has gained 18.8% over the past month and is up 326% year-to-date, as Dell’s growing role in AI computing infrastructure strengthens the investment case.
The rally also comes ahead of Dell’s scheduled inclusion in the S&P 100 on September 21, which could increase demand for the stock from funds and other investment vehicles tracking the index.
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Dell reported strong fiscal second-quarter results last week, with cumulative AI server revenue nearing $74 billion, about three times the level recorded a year earlier. Its commercial business also remained on a growth trajectory, with commercial revenue rising 22%, marking the eighth consecutive quarter of growth.
Further, Dell Technologies is set to raise $5 billion from an investment-grade bond sale that saw booming investor demand as the company rides a surge in revenue from AI servers.
Investors placed roughly $23 billion of orders for the offering at its peak, or almost five times the size of the deal, according to people familiar with the matter who asked not to be identified because they aren’t allowed to speak publicly. That compares with an average of about four times across investment-grade deals this year, according to Bloomberg-compiled data.
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The company was initially expected to raise about $4 billion, separate people said earlier.
The maker of servers and other data-center equipment is offering bonds in four tranches, with maturities ranging from three to 10 years. The longest-tenored note is set to yield 1.1 percentage points more than Treasuries, as much as 0.3 percentage point tighter than initial discussions, a separate person said.
