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US stock futures edged down despite Dell’s earnings report as Wall Street awaited an official update on US negotiations with Iran.
Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) slipped roughly 0.1%. Futures attached to the tech-heavy Nasdaq 100 (NQ=F) lowered 0.3%.
After the bell, Dell’s (DELL) results blew past investors’ expectations, lifting its stock close to 40%. The company issued an upbeat outlook, indicating the rapid expansion of data centers amid the AI boom would continue to drive demand for its servers, which run on Nvidia (NVDA) chips.
In day trading, stocks rose, with the S&P 500 (^GSPC) and Nasdaq (^IXIC) touching record highs, as confidence in the AI trade and hopes of easing global tensions boosted sentiment.
Since Trump signaled last week that the US is in the “final stages” of talks with Iran, markets have largely been upbeat. The trend continued this week, with the S&P 500 and Nasdaq hitting record highs three days in a row.
An official update on the negotiations, however, remains elusive, even as reports circulate of a deal for a ceasefire extension reaching Trump’s desk. Markets are eager for relief on the US-Iran war front as the closure of the Strait of Hormuz exacerbates rapidly rising prices and drums up concerns about the Federal Reserve’s next moves on interest rates.
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Dell shares surge after-hours as AI hardware sales blasts past analyst expectations
Bloomberg reports:
Dell Technologies Inc. (DELL) shares gained about 40% in extended trading after the hardware maker gave an outlook for annual sales that far surpassed analysts’ estimates, fueled by demand for servers that power artificial intelligence work.
Revenue in the fiscal year ending in January 2027 will be about $167 billion, including $60 billion from the sale of AI servers, the Texas-based company said Thursday in a statement. That’s up from a prior revenue outlook of about $140 billion and topped analysts’ average estimate of $142.1 billion, according to data compiled by Bloomberg.
Dell’s servers designed to run AI workloads are attracting customers from companies that rent computing power like CoreWeave Inc. and Nscale Global Holdings Ltd., as well as corporate clients and major AI providers. The company booked $24.4 billion in AI orders and generated $16.1 billion in AI server sales in the quarter ended May 1, Chief Operating Officer Jeff Clarke said in the statement. “The AI opportunity shows no signs of slowing.”
The shares rose to a high of $420 in late trading after closing at $317.05. Dell’s server business has been viewed as an AI winner this year, sparking the stock more than 150% higher through Thursday’s close.
