Dell Technologies (NYSE:$DELL) surged over 30% on Friday to reach an all-time high, capping off a week of strong gains for the computer maker. The stock jump came after Dell reported better-than-expected quarterly results driven largely by growth in its artificial intelligence (AI) server business.  

Strong Quarterly Earnings Beat Expectations 

Dell announced financial results for its fiscal fourth quarter and full 2023 year ended February 2nd, 2024. Revenue came in at $23.32 billion for the quarter, down 11% year-over-year but topping analyst estimates of $22.15 billion. Adjusted earnings per share were $2.20, significantly above expectations for $1.72 per share.

For the full fiscal year, Dell generated $88.4 billion in total revenue. While this represented a 14% annual decline from its previous fiscal year, investors appeared relieved by signs of stabilization in Dell's business entering fiscal 2024.

Surging Demand for AI Servers Boosts Outlook

A key highlight from Dell's latest earnings was the strong momentum seen in orders for its AI-optimized servers. Orders jumped 40% sequentially in the fourth quarter, and the company's backlog nearly doubled to $2.9 billion. 

"We've just started to touch the AI opportunities ahead of us, and we believe Dell is uniquely positioned with our broad portfolio to help customers build GenAI solutions that meet performance, cost and security requirements," said Jeff Clarke, Dell's Chief Operating Officer.

Executives pointed to AI servers as a major growth area going forward, both for Dell and the broader tech industry. The company is rapidly expanding production capacity to meet surging customer demand.

Dell Stock Hits Record High

Shares of Dell skyrocketed over 30% to $123 on Friday, March 1st, 2024, notching an all-time closing high for the stock. The company went private back in 2013 at $24.9 billion in a leveraged buyout before completing a complex relisting in 2018 to the public markets.

Prior to this week, Dell stock had never closed above $100 per share. Year-to-date, shares are now up over 60% amid a broader rally in tech stocks. The huge stock jump allowed Dell to edge out rival HP Inc. as the world's second most valuable PC maker behind Apple. Dell has a market capitalization of $88 billion compared to HP's $28.7 billion valuation as of March 2024.

Dell Technologies stock Weekly Chart: TradingView

Should You Buy Dell Stock in 2024?

With shares recently hitting an all-time high, investors may be wondering whether now is a good time to buy Dell stock heading into 2024. On one hand, the company seems poised to benefit from strong demand trends related to artificial intelligence, with orders for its AI servers surging. If these tailwinds persist, Dell could see significant growth ahead. 

However, valuations look stretched at current levels. Dell trades at nearly 17 times forward earnings, above historical norms. Given macro uncertainties still at play, investors may want to wait for a better entry point or dollar-cost average into a long-term position. That said, Dell's leading market position and key role in facilitating major tech advances position it well for the years ahead. For investors bullish on sectors like AI and cloud computing, Dell stock warrants consideration as part of a diversified technology portfolio.