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Data Center Demand Propels Tech Stocks as Major Suppliers Report Strong Results

Cisco shares surged nearly 15% in premarket trading after delivering a robust quarterly performance driven by data center strength. Hyperscalers placed massive orders for its networking equipment. Dell received a price target increase to $290 from $235 at Citi ahead of its May 28 earnings report, benefiting from artificial intelligence adoption broadening beyond hyperscalers. Analysts cited Dell's scale and pricing flexibility as competitive advantages despite rising memory costs. Broadcom secured a significant price target boost to $545 from $430 at Wells Fargo, with analysts raising artificial intelligence chip revenue forecasts substantially higher. The semiconductor designer benefits from Google's in-house processor success and maintains underappreciated momentum in networking. Market conditions remain favorable for data center infrastructure suppliers as demand expands beyond major cloud operators.