Dell Prices XPS 13 at $699 Amid AI-Driven Stock Rally

Dell introduced a new XPS 13 on Sunday priced at $699, with a $599 student price during the back-to-school season. The company positioned the model for students and young professionals and presented it as a lower-priced alternative to Apple’s MacBook Neo, which launched in March at $599 and $499 for students.

In a company blog, Dell described the XPS 13 as having a larger display and a lighter design than Apple’s model and said it represents the lowest price point the XPS line has reached.

The laptop announcement came days after Dell reported fiscal first-quarter revenue of $43.8 billion, an 88% increase from a year earlier. Reported diluted earnings per share were $5.24, and non-GAAP diluted EPS was $4.86, above analyst expectations of $2.93.

Growth in the quarter was concentrated in Dell’s Infrastructure Solutions Group, which generated $29 billion in revenue, up 181% year over year. Revenue from AI-optimized servers rose 757% to $16.1 billion. During the quarter the company recorded $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue.

Dell raised its fiscal 2027 AI-server revenue expectation to $60 billion and increased its full-year revenue forecast to $167 billion at the midpoint.

Analysts revised price targets following the results. Susquehanna upgraded its rating to Positive and raised its target to $700 from $138. Barclays set a $550 target, JPMorgan raised its target to $500, and Mizuho increased its target to $435. The stock jumped 33% on Friday after the earnings release and climbed about 1.45% in premarket trading on Monday to roughly $427.

Investors also noted a $9.7 billion Pentagon contract awarded to Dell to provide software services to the U.S. military. Apple shares were slightly lower in the same session.

Jeff Clarke, Dell’s chief operating officer, wrote in the company blog that Apple’s lower-priced laptop validates the market and that students and consumers deserve more affordable options. Company executives have said they plan to expand the consumer PC lineup and revive the XPS brand while growing AI infrastructure sales.

While the XPS 13 drew attention for its price and design, the quarter’s results and guidance were driven by demand for AI infrastructure and higher AI-server revenue expectations.