Dell Technologies (NYSE:DELL) stock is in a strong bull run, helped by a large US government contract and its role as a critical AI infrastructure company. It has jumped by 215% this year and 250% in the last 12 months, and analysts predict that it has more gains to go.

Dell Stock Surge Boosts Michael Dell's Net Worth By $72 Billion

The ongoing Dell stock surge has pushed its market capitalization to over $256 billion. This surge has helped to push Michael Dell's net worth by $72 billion this year to $213 billion, making him the 6th wealthiest person in the world.

Michael owns about 40% of Dell Technologies. At the same time, he owns DFO Management, an asset management company that manages his wealth and invests in hotels and liquid corporate credit. 

Dell shares have jumped this year as the company became a major player in the AI infrastructure industry. That is because it sells items like servers and networking equipment that are used by the biggest hyperscalers. 

A report released in May showed that the company was firing on all cylinders. Its revenue jumped by 88% in the first quarter to $43.8 billion. This growth was driven by its infrastructure division, whose revenue soared by 181% to $29 billion. Its servers soared by 757% to $16.1 billion. 

Dell's client solutions group made over $14.6 billion in Q1, up by 17% from the same period last year. As a result, the company boosted its forward guidance and continued to return funds to its shareholders. It now expects that its revenue will jump by 50% in Q2 to $45 billion, while its full-year figure will soar by 47% to $169 billion.

These numbers are stronger than those of other companies in the industry, like Super Micro Computer (NASDAQ:SMCI) and HP Enterprise (NYSE:HPE).

Dell stock is also benefiting from a recently-announced $9.7 billion deal with the Department of War. This deal also includes Microsoft (NASDAQ:MSFT) services and is expected to save the government over $422 million. 

Dell Valuation Multiples Point to More Gains

The ongoing Dell stock surge may have more room to run based on momentum and the fact that the company is not all that expensive. Data shows that the company has a forward price-to-earnings ratio of 22, slightly lower than the S&P 500 Index average of 23. This is crucial as the company is growing at a faster pace than the broader stock market by far.

Wall Street analysts are still bullish on the company, a move that will boost Dell's wealth if their estimates are accurate. Daiwa Securities expect that its stock will jump to $465, a 17% increase from the current level. Mizuho, Citic Securities, and Goldman Sachs (NYSE:GS) see the stock soaring to $500 in the near term. 

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