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Sometimes the best news for a company comes from its competitor. That was the story Wednesday for Dell Technologies Inc. (DELL), whose stock rose after an AI server rival raised its revenue outlook and Dell announced new products across its artificial intelligence portfolio.
The gains came as Nasdaq futures rose 0.70%, while S&P 500 futures advanced 0.28%.
Super Micro Computer Inc. (SMCI) raised its first-quarter revenue guidance Tuesday after the market closed, signaling strong demand for AI servers.
The company now expects revenue of $18.5 billion to $19.5 billion, up from its previous forecast of $14.5 billion to $15.5 billion.
The sharp increase fueled optimism about AI infrastructure spending and potential demand for Dell's competing server products.
At NVIDIA GTC on Wednesday, Dell announced new products and infrastructure upgrades through its Dell AI Factory platform, developed with NVIDIA Corp. (NVDA).
The updates include deskside solutions for agentic AI and modular infrastructure designed to help businesses deploy AI applications.
Dell also reported that more than 6,500 enterprise customers have adopted its AI Factory platform, up from 5,000 in the previous quarter.
Separately, Securities and Exchange Commission filings Monday disclosed stock transactions involving Dell executives and major shareholders.
Chief Accounting Officer Richard Troy Sharp reported that 146 shares were withheld at $507.93 each on Oct. 15 to cover approximately $74,000 in tax obligations tied to restricted stock units.
Sharp retained 6,584 shares following the transaction. The withholding was related to taxes and did not represent an open-market sale.
Separate filings disclosed that three Silver Lake-affiliated funds distributed a combined 51,591 Class C shares to certain employees and managing members.
The stock remains below its 20-day simple moving average (SMA) of $536.95 and its 50-day SMA of $513.37, signaling continued near-term weakness despite Wednesday's rebound.
It is roughly 8% below its 20-day SMA and 3.8% below its 50-day SMA. A sustained move above these levels could strengthen bullish momentum.
However, the longer-term trend remains positive. The stock trades about 6% above its 100-day SMA of $466.08 and 55.7% above its 200-day SMA of $317.31.
The stock's March golden cross, when the 50-day SMA moved above the 200-day SMA, also supports the longer-term bullish outlook.
DELL Stock Price Activity: Dell shares gained 6.81% to $493 in Wednesday's premarket trading, according to market data.
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