Strong Financial Report from Lenovo Boosts Dell and HP with a Single-Day Increase of over 14%

Dell Technologies and HP both saw significant increases on Friday, with Dell reaching a record high of approximately $295 during the trading session, a surge of over 15%, while HP's increase was about 14%. One direct catalyst for the market movement was the strong fourth-quarter results released by PC giant Lenovo.

Lenovo's fourth-quarter revenue grew by 27% year-on-year to $21.6 billion, with adjusted net profit increasing by 101%, benefiting from the continued recovery of the PC market and the explosive growth of AI business. Among them, the revenue from the intelligent devices business grew by 24% year-on-year to $14.6 billion, with AI-related revenue soaring by 84% year-on-year. Lenovo's results further validated the overall prosperity of PC and data center hardware demand driven by AI, providing fundamental backing for the rise of Dell and HP.

At the same time, several Wall Street institutions have intensified their price target increases before Dell's earnings report next week. Wells Fargo analyst Aaron Rakers raised his target price from $180 to $270, maintaining a buy rating, and wrote in a client report: "We expect Dell to raise guidance for fiscal year 2027 against the backdrop of accelerating AI infrastructure demand." JPMorgan raised its target price from $205 to $280; Mizuho increased it to $300, and Citi raised it to $290, all maintaining bullish ratings. Morgan Stanley, however, raised its target price from $110 to $170, but remained cautious about profitability in the second half of the year, maintaining a sell rating.

The institutions' reassessment is emboldened by the performance that has already been realized. As of the end of January 2026, in fiscal year 2026, Dell's full-year revenue reached a record high of $113.5 billion, a year-on-year increase of 19%, with cumulative AI-optimized server orders exceeding $64.1 billion, shipments exceeding $25 billion, and an end-of-period AI order backlog of up to $43 billion. The company guided AI server revenue for fiscal year 2027 at around $50 billion, nearly doubling year-on-year. Next Thursday (May 28th) will see the release of the first-quarter financial report, with market consensus expectations of earnings per share at $2.96 and revenue at $35.75 billion. HP will release its second-quarter results on May 27th, with the market expecting earnings per share of $0.72 and revenue of $14.07 billion.

Tech analyst Jukan pointed out that behind this round of increases, there is an underestimated market logic: the CPU servers used for Agenic AI share a large number of components with general-purpose servers, but at a higher unit price, directly increasing the average selling price, and Dell's deep accumulation in the general-purpose server market is naturally benefiting from this migration. He also noted that CPU servers are not as highly dependent on Taiwan-based ODM contract manufacturing as GPU servers, giving Dell greater autonomy and control in the supply chain.

Dell has seen a cumulative increase of about 20% in the past five trading days, with a rise of over 36% in the past month; HP has increased by about 19% in the past five trading days, and more than 22% in the past month. The core variable currently under market focus is whether Dell and HP's financial reports can exceed expectations again, as well as the management's latest statements on the full-year trend of AI server and PC demand.