New Delhi, May 30 -- Dell Technologies Inc. shares surged the most since the company returned to the public markets in December 2018, lifted by an outlook for annual sales that far surpassed expectations on demand for servers that power artificial intelligence work.

Revenue in the fiscal year ending in January 2027 will be about $167 billion, including $60 billion from the sale of AI servers, the Texas-based company said Thursday in a statement. That's up from a prior revenue outlook of about $140 billion and topped analysts' average estimate of $142.1 billion, according to data compiled by Bloomberg.

Dell's servers designed to run AI workloads are attracting customers from companies that rent computing power like CoreWeave Inc. and Nsc...