Shares of Dell Technologies are skyrocketing on Friday after the company said it was lifting its full year forecast for revenue and profit amid an AI boom and steady demand for computer hardware and server products.
Halfway through the session, shares have risen roughly 23% and are now around 68% higher on the year.
The results could signal a return to spending for the tech industry after major networking equipment provider Cisco also beat quarterly revenue estimates.
"AI is already showing it's a long-term tailwind, with continued demand growth across our portfolio," Chief Operating Officer Jeff Clarke said.
The company forecasted third-quarter revenue between $22.5 billion and $23.5 billion, beating analysts' estimates of $21.67 billion, according to Refinitiv data. Dell expects earnings per share of $1.45, plus or minus 10 cents compared with estimates of $1.38.
For the full year, Dell said it now expects revenue between $89.5 billion and $91.5 billion, and earnings per share of $6.30, plus or minus 20 cents.
Dell reported second quarter revenue and EPS above analyst estimates.
Driven by higher demand for AI-optimized servers, Dell said servers and networking revenue reached $4.27 billion over the second quarter, up 11% from the first quarter.
Meanwhile, revenue at the company's client solutions group jumped 8% from the first quarter to $12.94 billion.
At least 10 analysts raised their target prices for Dell's shares after the report with several, including Credit Suisse and Evercore ISI, citing its position to benefit from AI.
Reuters contributed to this report.