This article first appeared on GuruFocus.

Dell Technologies shares surged about 4% early Wednesday after the company raised its full-year 2026 revenue forecast, citing strong demand for AI servers.

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The PC and enterprise-IT company projected full-year revenue of $111.2 billion to $112.2 billion, up roughly 17% at the midpoint, above both its prior range and analyst estimates. Dell expects around $25 billion of that total to come from AI server sales, up from $20 billion previously.

For the fourth quarter, Dell expects revenue of $31$32 billion, topping Street estimates, and adjusted earnings per share of about $3.50, compared with analysts' $3.31 estimate.

The revised outlook reflects robust performance in Dell's Infrastructure Solutions division and rising orders for AI infrastructure projects.

With this move, Dell renewed investor confidence in its ability to capitalize on growing enterprise demand for AI compute capacity.