tech
February 27, 2026
Dell shares climb 22% on earnings beat as company navigates rising memory costs
Dell's strong fourth-quarter results show the company is navigating the memory shortage well so far.
TL;DR
- Dell shares rose 22% after exceeding fiscal fourth-quarter earnings and revenue estimates.
- The company issued strong fiscal 2027 revenue guidance, expecting between $138 billion and $142 billion.
- Dell anticipates its AI server revenue to reach $50 billion by 2027.
- A global shortage of memory chips is increasing prices and prioritizing components for AI development.
- Dell has increased PC prices to offset rising costs due to component demand outpacing supply.
- Competitor HP Inc. has seen its stock decline amid similar pressures from increased memory prices, which now represent a significant portion of its PC bill of materials.
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