Dell Technologies Inc. (NYSE: DELL) shares surged 38% in premarket trading Friday after the company delivered an annual revenue outlook that dramatically exceeded analyst expectations.

The Texas-based hardware maker projected fiscal year revenue ending January 2027 at approximately $167 billion, including $60 billion attributed to AI server sales alone.

That figure represents a significant jump from Dell’s prior revenue outlook of approximately $140 billion and blew past the analyst consensus estimate of $142.1 billion, according to Bloomberg data.

Dell’s AI-optimized servers are drawing customers from cloud computing rental companies such as CoreWeave Inc. and Nscale Global Holdings Ltd., as well as corporate clients…