- Dell raised FY27 revenue guidance to $192B, a 15% increase, driven by AI-optimized servers forecast at $74B; GAAP EPS expected up 41%.
- Dell's AI order backlog reached a record $95B, with management citing enterprise acceleration.
- Dell announced a partnership with JERA and RHAELM for a 400MW AI data center in Chiba, Japan, with $15B investment and completion targeted for 2028-2029.
- Memory chip supply, specifically DRAM and NAND, is the primary constraint preventing Dell from converting its backlog into revenue.
- HPE shares jumped 8% on record AI orders, including a Vultr order, and raised networking growth outlook; HPE also cited supply constraints.
- The rally was concentrated in AI server hardware, with DELL up 4% and HPE up 8%, versus SPY's 0.7% gain.
Quotes
“The constraints remain the same… DRAM, DRAM, DRAM, followed by NAND, NAND, NAND.”
“Demand outstrips supply”
“We are supply constrained.”
“The acceleration is enterprise.”
“Supply will continue to be constrained, which means we’re going to continue to run into high backlogs as we go forward.”
“We booked more orders than any prior quarter in our history, resulting in a record-breaking backlog for the company.”
“Market euphoria over expansion could fade quickly if results disappoint or macro sentiment worsens”
“I see upside prevailing — Dell’s momentum and international expansion set the stage for higher valuations”
“Short-term traders should watch for momentum breaks but be ready for quick turns if sentiment shifts”