Dell shares surged nearly 40% Thursday after reporting $43.8 billion in quarterly revenue, an 88% jump year-over-year. The computer hardware maker's stock performance outpaced broader market expectations, with investors responding positively to the company's overall financial strength.

AI-optimized servers drove the growth, generating $16.1 billion in revenue—more than a third of Dell's total. That segment jumped 757% year-over-year, prompting Dell to raise its full-year AI revenue forecast to $60 billion, up 144% from the prior year.

The Pentagon's $9.7 billion contract further boosted investor confidence. Dell now trades 150% higher since President Trump's accounts purchased over $1 million worth of shares, signaling sustained optimism about the company's strategic direction in AI infrastructure.