Dell Surges 23% on AI Order Beat, AST SpaceMobile Soars 47%
6h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
dell-technologiesai-servers
Fazen Markets Editorial Desk
Collective editorial team · methodology
Trades XAUUSD 24/5 on autopilot. Verified Myfxbook performance. Free forever.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The majority of retail investor accounts lose money when trading CFDs. Vortex HFT is informational software — not investment advice. Past performance does not guarantee future results.
Dell Technologies Inc. shares rose 23% in premarket trading on Thursday, 29 May 2026, after the company disclosed its artificial intelligence server order backlog had tripled quarter-over-quarter. Hewlett-Packard Enterprise Co. shares fell 4% following its earnings report. AST SpaceMobile Inc. shares soared 47% after announcing a definitive commercial agreement with AT&T Inc. to provide direct-to-cell satellite services. The moves were detailed in a market-moving report published early Thursday.
The divergence between Dell's surge and HP's decline underscores a decisive market rotation within the tech hardware sector. Investors are aggressively rewarding companies with clear exposure to generative AI infrastructure buildouts, while punishing those seen as lagging. This bifurcation echoes prior technology investment cycles, such as the cloud computing ramp from 2015 to 2018, where early infrastructure leaders like Nvidia Corp. and Arista Networks Inc. significantly outperformed traditional hardware peers for multiple fiscal years.
The current macro backdrop, characterized by stable 10-year Treasury yields around 4.2% and a cautiously optimistic Federal Reserve, has shifted investor focus from broad monetary policy to stock-specific growth catalysts. The immediate catalyst for Dell's premarket surge was an unscheduled business update, a rare corporate action that signals material positive news outside the standard earnings calendar. This update specifically highlighted demand for AI-optimized servers, a segment where Dell has been competing directly with Super Micro Computer Inc. and Hewlett-Packard Enterprise.
Dell's stock movement translated to a premarket gain of approximately $28 billion in market capitalization, lifting its total valuation near $150 billion. Its AI server order backlog tripled sequentially, a growth rate that far exceeds the broader server market, which research firm IDC projects will grow at a compound annual rate of 8.7% through 2027. In contrast, Hewlett-Packard Enterprise reported quarterly revenue of $7.2 billion, a figure that fell short of the median analyst estimate of $7.35 billion.
AST SpaceMobile's 47% premarket gain followed its announcement of a multi-year commercial agreement with AT&T, a deal that commits the telecom giant to purchase network equipment and services. Other notable movers included The Gap Inc., which rose 8% after raising its full-year profit forecast, and GitLab Inc., which fell 9% after issuing guidance that missed expectations. The iShares Semiconductor ETF (SOXX) was indicated 1.2% higher in premarket action, significantly outperforming the flat indication for the S&P 500 index.
| Company | Pre-Market Move | Key Data Point |
|---|---|---|
| Dell Technologies (DELL) | +23% | AI server order backlog tripled QoQ |
| AST SpaceMobile (ASTS) | +47% | Signed definitive commercial agreement with AT&T |
| Hewlett-Packard Enterprise (HPE) | -4% | Q2 revenue of $7.2B missed $7.35B estimate |
| The Gap (GPS) | +8% | Raised full-year adjusted EPS forecast |
Dell's explosive move signals capital is flowing decisively into the AI infrastructure value chain, benefiting related semiconductor and component suppliers. Companies like Marvell Technology Inc., which provides custom AI compute chips, and Nvidia, the dominant GPU supplier, are positioned to see sustained demand tailwinds. Networking equipment providers, including Arista Networks and Broadcom Inc., also stand to gain from the increased data center buildout required to support AI server clusters.
A key risk to the bullish thesis is the potential for order lumpiness and customer concentration, where a handful of large cloud service providers could delay or cancel capex projects, swiftly reversing the positive momentum. The sharp sell-off in GitLab shares on its outlook suggests investor patience for high-valuation software names remains thin if growth trajectories falter. Current positioning data from major prime brokers indicates institutional investors are increasing net exposure to the semiconductor and hardware sectors while reducing holdings in pure-play software and consumer discretionary names.
Investors will scrutinize Dell's next formal earnings report, scheduled for late August 2026, for confirmation that the order surge is translating into revenue and expanding margins. For the broader AI hardware trade, key catalysts include Nvidia's next earnings report on 21 August and the Taipei International Computer Show in early June, where several server manufacturers typically provide market updates.
Technical levels to monitor for Dell include the $180 per share zone, which represents a key psychological and historical resistance level from late 2025. A sustained breakout above this level could signal a longer-term re-rating. For AST SpaceMobile, the stock must hold above its 200-day moving average near $12.50 to confirm the breakout from its recent trading range is durable, not merely a short-squeeze event.
Dell's tripling order backlog is a direct positive indicator for Nvidia, as Dell's AI servers are predominantly built around Nvidia's H100 and next-generation B100 GPUs. Strong demand from a major original equipment manufacturer like Dell suggests Nvidia's data center segment revenue, which exceeded $22 billion last quarter, could see further upside. This relationship highlights the ecosystem dependency within AI infrastructure, where server demand directly drives semiconductor and high-bandwidth memory sales.
The AT&T agreement is a landmark for the direct-to-cell satellite sector, providing AST SpaceMobile with its first major, contracted U.S. carrier partner. This validates the company's technology and business model, potentially pressuring competitors like SpaceX's Starlink and Lynk Global to accelerate their own carrier partnership announcements. The deal structure, involving equipment sales and service revenue, provides a clearer path to monetization than previous non-binding memoranda of understanding that have characterized the nascent industry.
Historical analysis of S&P 500 constituents shows that stocks gapping up more than 20% in premarket trading on fundamental news tend to give back a median of 15% of that gain over the following five trading sessions as profit-taking emerges. However, approximately 60% of such stocks remain above their pre-announcement price one month later if the catalyst represents a sustained fundamental shift, not a one-time event. The magnitude of Dell's move suggests options market makers will need to hedge significant gamma exposure, which can amplify volatility in the near term.
Premarket action on 29 May confirms capital is chasing concrete AI infrastructure orders over broader tech narratives, creating clear winners and losers.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
Vortex HFT is our free MT4/MT5 Expert Advisor. Verified Myfxbook performance. No subscription. No fees. Trades 24/5.
Trade 800+ global stocks & ETFs
Start TradingSponsored
Open a demo account in 30 seconds. No deposit required.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.