Shares of Dell Technologies Inc. (NASDAQ:DELL) soared in premarket trading on Wednesday, up about 6%, after the company posted third-quarter earnings that beat expectations and raised its full-year forecast on the back of surging demand for AI servers and improved profitability in its infrastructure division.

Dell’s strong results prompted Goldman Sachs to raise its 12-month price target from $175 to $185, implying a 47% surge from Tuesday’s close.

Dell Beats Estimates And Hikes Forecasts On Explosive AI Server Growth

Dell’s third-quarter earnings for fiscal 2026 delivered a beat-and-raise, driven by one clear catalyst: explosive demand for AI servers, particularly from second-tier cloud service providers and high-margin enterprise customers.

AI server orders soared to $12.3 billion, more than doubling from the $5.6 billion recorded in the previous quarter.

The headline figure was an earnings per share of $2.59, ahead of consensus estimates at $2.47. Revenue came in at $27 billion, roughly in line with expectations.

Dell also saw a clear jump in profitability. Dell's Infrastructure Solutions Group (ISG) EBIT margins improved to ...