Dow Crosses 51,000 as Dell's AI Boom Ignites a Tech Rally
MarketDash
Stocks hit fresh records Friday after Dell's massive AI sales forecast sent the server trade soaring. The Dow topped 51,000 for the first time, while the S&P 500 extended its winning streak to nine weeks.
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U.S. stocks climbed to fresh record highs by midday Friday as investors piled further into the artificial-intelligence trade following a blockbuster forecast from Dell Technologies Inc. Dell Technologies Inc. (DELL).
Dell surged 28% after reporting first-quarter revenue of $43.8 billion, an 88% increase from a year earlier, alongside adjusted earnings of $4.86 per share.
The company disclosed $24.4 billion in AI-related orders and dramatically raised its fiscal 2027 outlook, projecting revenue of $165 billion to $169 billion versus Wall Street expectations of roughly $144 billion.
Dell also boosted its AI server revenue target to approximately $60 billion, reinforcing optimism around the broader AI infrastructure buildout.
Meanwhile, easing geopolitical tensions in the Middle East continued to pressure energy markets. U.S. crude oil futures fell to $87 a barrel, leaving WTI on track for a second consecutive weekly decline.
Adding to the risk-on mood, President Donald Trump said Friday that “the Hormuz Strait must be immediately open, no tolls, for unrestricted shipping traffic, in both directions,” adding that the U.S. naval blockade “will now be lifted” as he headed to the Situation Room to make a final decision on a proposed agreement with Iran.
Within U.S. equity markets, gains were concentrated in large-cap technology shares, while small caps and defensive sectors lagged.
The S&P 500 advanced 0.2% to 7,581.84, extending its monthly gain to nearly 5%. The benchmark index is also on pace for a ninth consecutive weekly advance — a streak achieved only 10 times since World War II.
The Dow Jones Industrial Average rose 378 points, or 0.8%, to a record 51,047.02.
The Nasdaq 100 added 0.3% to 30,306.76 and is on track for a gain of more than 10% in June. Among the Magnificent Seven, Microsoft Corp. Microsoft Corp. (MSFT) climbed 4% after fresh funding for Anthropic reinforced enthusiasm for AI software and cloud-computing beneficiaries.
The small-cap Russell 2000 underperformed, slipping 0.7% to 2,915.80.
In commodity markets, gold gained 1.5% to roughly $4,564 an ounce as Treasury yields retreated, while Bitcoin Bitcoin (BTC) traded little changed near $73,742.
The SPDR Dow Jones Industrial Average ETF Trust SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.8%.
The Invesco QQQ Trust Invesco QQQ Trust (QQQ) climbed 0.3%.
The iShares Russell 2000 ETF iShares Russell 2000 ETF (IWM) slid 0.7%.
Dell’s AI Blowout Powers The Server Trade
Technology led the tape, with the Technology Select Sector SPDR Fund Technology Select Sector SPDR Fund (XLK) out front as AI hardware and software names rallied.
The Consumer Staples Select Sector SPDR Fund Consumer Staples Select Sector SPDR Fund (XLP) lagged on weakness in Walmart Inc. Walmart Inc. (WMT) and Costco Wholesale Corp.Costco Wholesale Corp. (COST), while the Energy Select Sector SPDR Fund Energy Select Sector SPDR Fund (XLE) softened alongside falling crude.
The strength clustered in the VanEck Semiconductor ETF VanEck Semiconductor ETF (SMH) and the iShares Expanded Tech-Software Sector ETF iShares Expanded Tech-Software Sector ETF (IGV), with chip names such as Broadcom Inc. Broadcom Inc. (AVGO) up 2.3%, Micron Technology Inc. Micron Technology Inc. (MU) up 5% and QUALCOMM Inc. QUALCOMM Inc. (QCOM) up 4.4%. Software was buoyed by Oracle Corp. Oracle Corp. (ORCL), up about 8%, alongside Microsoft’s 4% surge.
Dell’s print rippled across the AI-infrastructure trade: Hewlett Packard Enterprise Co. Hewlett Packard Enterprise Co. (HPE) jumped more than 15% and Super Micro Computer Inc. Super Micro Computer Inc. (SMCI) rose nearly 12%, both riding Dell’s halo rather than fresh company news, with HPE due to report June 1.
NetApp Inc. NetApp Inc. (NTAP) rallied nearly 25% after fiscal fourth-quarter revenue of $1.95 billion topped the $1.91 billion estimate, helped by a multiyear cloud agreement with Google, with management guiding fiscal 2027 EPS to $8.70-$9.00. Workday Inc. Workday Inc. (WDAY) climbed more than 10% after delivering its strongest first-quarter new-bookings growth in five years, beating on revenue and EPS, and raising its full-year margin forecast.
On the downside, Autodesk Inc. Autodesk Inc. (ADSK) fell nearly 9% despite beating on EPS of $2.99 versus $2.84 and raising guidance, as investors balked at its $3.6 billion all-cash deal to acquire MaintainX.
Costco Wholesale Corp. slid 4.7% after third-quarter EPS of $4.93 narrowly missed the $4.98 consensus on margin pressure and a lofty valuation, despite a revenue beat.
