Dell Technologies shares jumped 4% on Friday following a surge in demand for its AI-powered servers, leading the company to raise its full-year earnings and revenue forecasts.

The tech giant, known for supplying servers and related infrastructure to enterprises, has strengthened its AI capabilities through a strategic partnership with Nvidia earlier this year. With Nvidia’s advanced technology, Dell is enticing mid-sized customers to upgrade to AI-enabled servers.

“Dell’s strong performance was solely driven by AI servers, while its storage and PC revenues missed expectations,” Bernstein analysts wrote in a note. They highlighted that around 80% to 90% of Dell’s server customers appear to be tier 2 cloud service providers, with new opportunities coming from competitive bids against Super Micro Computer.

Revenue from Dell’s Infrastructure Solutions Group, which includes server sales, grew 38% year-over-year in the second quarter. Demand for AI-optimized servers, including the flagship PowerEdge XE9680, rose 23% sequentially to $3.2 billion, according to Dell’s report on Thursday.

Dell’s AI-driven pipeline has now increased to between $11 billion and $13 billion, up from the $8 billion to $10 billion estimated in the first quarter.

For the quarter, Dell reported adjusted earnings of $1.89 per share and revenue of $25.03 billion, both surpassing LSEG’s estimates.

Following these results, at least three brokerages raised their price targets for Dell. The stock now has a median target price of $155, with 19 out of 22 analysts rating it a “buy” or higher, based on LSEG data.

Despite the recent rise, Dell shares, currently at $115, are still down 36% from their all-time high reached in May.