Dell Technologies shares fell 6.80% to $425.00 from $456.01 in the session that closed Tuesday, part of a broader retreat in chips and megacap tech as renewed U.S. strikes on Iran pushed crude toward $95 a barrel and sent the ten-year Treasury yield to 4.79%. The move deepened a five-day slide of 5.87% for the stock, even though shares remain up 11.29% over the last 30 trading days and well within a 52-week range that runs from $110.22 to $514.00.
The selloff came just hours before Dell's fiscal 2027 second-quarter report, released after Tuesday's close, turned the narrative around. The company posted record revenue and earnings, with an earnings surprise of 41.65% and a revenue surprise of 3.60% versus Wall Street estimates, and raised its full-year revenue outlook by $25 billion to around $192 billion. Management pointed to accelerating demand for AI servers alongside traditional data-center infrastructure, storage and commercial PCs as the drivers behind the upgrade. Shares jumped as much as 10% in extended trading following the release, alongside gains in fellow earnings movers Credo and Palo Alto Networks.
Wall Street's response to the print was mixed heading into the report. Deutsche Bank initiated coverage on Dell with a Hold rating and a $480 price target, while BofA Securities maintained a Buy and raised its target to $505 from $500 in the days before the results. Options markets had priced in a roughly 11% swing around the earnings release, reflecting how much the stock has already run this year and how sensitive it has become to any change in the AI infrastructure growth story.
The open question now is whether Dell's after-hours pop holds once regular trading resumes, given that Tuesday's session showed the stock can still get pulled down by macro forces like oil prices and Treasury yields even on a week when its own fundamentals are firing. Investors will be watching whether the AI-server backlog and the $25 billion outlook raise are enough to offset a market environment that turned skittish before the earnings news even broke.