AI server demand helped Dell lift its full-year guidance
Dell Technologies Inc (NYSE:DELL) is powering the tech sector today, up 33% to trade at $420.98, and earlier hitting a record high of $428.68. The hardware firm reported adjusted first-quarter earnings of $4.86 per share on $43.8 billion in revenue, both of which topped estimates. Better yet, the company hiked its full-year guidance due to surging AI server demand.
The report prompted nine price-target hikes and an upgrade from Susquehanna to "positive" from "neutral." The earnings triple play has hardware stocks Hewlett Packard Enterprise (HPE) and Super Micro Computer (SMCI) up 9.9% and 12.2%, respectively.
DELL is on track for its largest single-session gain on record. The shares are eyeing a seventh-straight win and are now up 235% in 2026. Keep an eye on the stock's 14-Day Relative Strength Index (RSI) going forward, last seen up in "overbought" territory at 90.
Options traders are getting in on the action. In just the first half hour of trading, over 148,000 contracts have changed hands, volume that's 10 times the average intraday amount. The weekly 5/29 450-strike call is the most popular, where new positions are being bought to open.
The good news for options traders is that DELL's Schaeffer's Volatility Scorecard (SVS) comes in at 90 out of 100. In other words, the security has consistently realized higher volatility than its options have priced in over the past 12 months.