Dell Technologies shares soared on Friday after the company reported a sharp jump in revenue driven by demand for artificial intelligence servers, delivering the stock its best day on record.

The stock closed up 32.76%, narrowly topping its previous single-day gain set in March 2024. The rally followed Dell's quarterly results released after Thursday's market close, which showed the company growing revenue at its fastest pace since it returned to public markets in 2018.

A surge in orders for AI-focused server systems was the main driver of the results. Those servers use graphics processing units from chipmakers such as Nvidia and have become a key part of the infrastructure boom surrounding artificial intelligence. Dell said AI server revenue climbed 757% from a year earlier to $16.1 billion.

Overall revenue rose nearly 88% from the same period last year, far exceeding Wall Street expectations. Adjusted earnings per share came in at $4.86, well above analysts' estimate of $2.94.

The results drew strong reactions from analysts and investors, many of whom said they were surprised by the scale of the beat. Ben Reitzes, head of technology research at Melius, said the company delivered a quarter unlike anything he had seen. He noted that Dell surpassed expectations across the board, not just on AI-related sales.

Morgan Stanley also said its team had underestimated the quarter's strength. In a note to clients, the firm said it had expected a solid beat and higher guidance, but that the actual results forced it to revisit its model and price target. The analysts described the quarter as one of the most impressive they had seen in hardware coverage, especially given conditions across the broader component market.

Friday's jump added to an already large rally in Dell's shares. Before the latest move, the stock had nearly tripled over the past year, reflecting both investor enthusiasm for AI infrastructure and the company's expanding role in the server market.

Dell's rise has also come amid a closer relationship between chairman and chief executive Michael Dell and President Donald Trump during Trump's second term. Government ethics filings showed Trump bought between $1 million and $5 million worth of Dell stock on Feb. 10, after Michael and Susan Dell announced a $6.25 billion donation to help fund Trump Accounts for millions of U.S. children. Trump later publicly encouraged Americans to buy Dell shares at a White House event earlier this month.

The company also disclosed a separate boost this week when it won a $9.7 billion Pentagon contract to supply software to the U.S. military.

Together, the results and recent developments have turned Dell into one of the market's standout names this year. Investors are now watching whether the company can sustain the pace of demand for AI servers as the broader buildout of artificial intelligence infrastructure continues.