Dell Technologies Inc. (DELL) saw a 5.88% increase in shares on Tuesday, closing at $141.77 per share due to a positive credit rating and outlook from Fitch Ratings. Fitch raised DELL’s Long-Term Issuer Default Ratings (IDRs) to BBB+ from BBB, citing low default risks and strong capacity to pay obligations.

Fitch Ratings noted that Dell Technologies Inc. (DELL) has sustained core EBITDA leverage below 2x since fiscal 2024, with expectations it will remain below this level in the future. The company’s AI server business is rapidly growing, set to generate $20 billion in revenues for fiscal year 2026 from nearly zero in fiscal year 2024.

The Infrastructure Solutions Group (ISG) at Dell Technologies Inc. (DELL) expects growth in AI servers supported by an $11.7 billion backlog in fiscal 2Q26. While growth may moderate, the ISG will remain a driver. Fitch sees rising data needs for AI increasing system complexity and inventory requirements.

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Read more at Yahoo Finance: Dell Technologies (DELL) Climbs on ‘Low Default Risk’ Credit Rating