Key insights
- Dell's stock has surged following strong AI server demand and better-than-expected earnings, significantly boosting CEO Michael Dell's net worth and placing him among the world's richest individuals. This rally, driven by a 757% increase in AI-optimized server orders, highlights the continued strength and investor focus on AI-related hardware companies. The positive sentiment around Dell and other AI beneficiaries like Broadcom suggests ongoing investor appetite for technology infrastructure plays, potentially signaling continued strength in the tech sector.
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Dell's recent rally has CEO Michael Dell climbing the ranks of the world's richest people—and ahead of some big names.
Shares of Dell (DELL) have added nearly a third of their value since the AI server maker posted better-than-expected earnings late last week. That has lifted Michael Dell's net worth by $37 billion to $233 billion through Wednesday's close, making him the world's sixth-richest person, according to the Bloomberg Billionaires Index.1 The gain helped him overtake Meta Platforms' (META) Mark Zuckerberg, and he currently sits above Nvidia's Jensen Huang (NVDA)—while looking up at Amazon.com's (AMZN) Jeff Bezos.
Much of Michael Dell's estimated wealth is tied to his roughly 40% stake in the tech company, so his wealth closely tracks the stock, which has more than tripled in value this year as sales of its AI servers surged. Dell has also benefitted from a high-profile show of support from the Trump administration. The CEO announced billions of dollars in donations late last year to support Trump Accounts for children.
Dell reportedly owns a sizable stake in custom AI chipmaker Broadcom (AVGO), which he acquired after VMware, which was spun off from Dell in 2021, was sold to Broadcom for $69 billion in 2023. Broadcom, which has rallied to record highs recently along with Dell, was up close to 40% year-to-date through Wednesday.
Dell last week reported quarterly adjusted earnings per share of $4.86 that more than tripled from a year earlier, on revenue that nearly doubled to a record $43.8 billion, as AI-optimized server orders rocketed 757% to $16.1 billion.
Recent gains in AI-linked stocks have shifted the top of the billionaire leaderboard. Surging shares of Oracle (ORCL) have Larry Ellison now third on the Bloomberg list, ahead of Bezos and Google co-founder Sergey Brin.
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