The supercomputer deal with Nvidia and TotalEnergies pushed Dell to a new 52-week high
Dell Technologies hit a new 52-week high today, adding to a year in which the stock has nearly doubled in value. The immediate catalyst was a major new contract with energy giant TotalEnergies and Nvidia to build a next-generation supercomputer, bringing fresh momentum to a company that has become one of the year’s most consistent technology outperformers.
What happened today and the Pangea-5 deal
Dell and Nvidia jointly signed a contract with TotalEnergies to build a high-performance computing system called Pangea-5. The deal is valued at more than €100 million, or roughly $117.4 million. The new system will be installed at TotalEnergies’ scientific and technical center in Pau, France and is expected to be operational in 2027. Its purpose is to give TotalEnergies the computing capacity to accelerate energy research, improve efficiency and support the company’s long-term energy transition work.
The announcement arrived just 2 days after Mizuho maintained an Outperform rating on Dell, and it follows separate analyst upgrades from Melius Research and Citigroup, both of which raised their price targets while keeping Buy ratings in place. Melius lifted its target to $245 from $200. Citigroup moved its target to $235 from $180. Both cited accelerating demand for Dell’s AI servers and noted that a Department of Justice indictment against competitor Supermicro created an opening for Dell to capture new enterprise customers.
The AI server business driving Dell’s 97% year
The Pangea-5 deal is the latest addition to a story that has been building all year. Dell’s AI-optimized server revenue surged 342% year over year in the fourth quarter of fiscal 2026, reaching $9 billion and representing approximately 26% of total company revenue in that quarter. The company signed $34.1 billion in new AI orders during those 3 months alone and carried a record $43 billion in committed AI server backlog into the current period.
Full-year fiscal 2026 revenue came in at $113.5 billion, up 19%, while non-GAAP diluted earnings per share hit a record $10.30, up 27%. Both figures beat analyst estimates comfortably.
The demand driving that growth shows no clear signs of easing. The rise of agentic AI is increasing the need for CPU-based computing alongside specialized GPU infrastructure, and Dell sits in the middle of both supply chains. The company is also positioned to benefit from Nvidia’s upcoming Vera Rubin GPU architecture, which is expected to ship in volume in the second half of 2026, potentially accelerating Dell’s revenue growth further.
On the consumer side, approximately 500 million personal computers worldwide are now at least 4 years old, and Microsoft ended support for Windows 10 in late 2025. That combination is expected to trigger a meaningful PC replacement cycle over the next one to two years, which would reduce margin pressure on Dell’s traditional hardware business while the AI server segment continues to scale.
What’s coming next: the May 28 earnings report
Dell is scheduled to report first-quarter fiscal 2027 earnings on May 28, 2026, after market close. Management has guided for revenue of approximately $35.2 billion at the midpoint, with earnings per share of $2.90 plus or minus $0.10, which would represent an 87% increase from the same period a year earlier. Dell has beaten the earnings-per-share consensus 75% of the time over the past 2 years and topped revenue estimates 63% of the time, giving the setup a historically encouraging profile.
Analysts modeling the quarter expect the AI server backlog to set another record, which could prompt management to raise its fiscal 2027 guidance and reinforce the view that the company’s structural shift toward AI infrastructure is still in its early stages. At a forward price-to-earnings ratio of approximately 17.8x, some analysts argue Dell still trades below where a company with its AI positioning should be valued, with at least 1 projection targeting a price of $305.70 over the next 12 months.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The author and publication are not registered investment advisors and do not provide personalized investment recommendations.