By Erica Kollmann
Publication Date: 2026-05-28 22:05:00
The catalyst was Dell’s surprising fiscal first-quarter result, reported after the close on Thursday.
Dell posted revenue of $43.84 billion, blowing out the consensus estimate of $35.45 billion, according to Benzinga Pro.
Adjusted EPS was $4.86, nearly double the Street estimate of $2.94. Total revenue increased 88% year over year, with the biggest headline grabber being AI-optimized server revenue of $16.1 billion, a staggering 757% higher than the prior-year period.
‘The AI opportunity shows no signs of slowing down’
Dell COO Jeff Clarke bluntly summarized the demand environment: “We booked $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue. We are raising our FY27 AI server revenue expectations to $60 billion, which just goes to show that the AI opportunity shows no signs of slowing down.”
Those types of comments increase sentiment toward Hewlett Packard Enterprise, which competes in artificial intelligence servers, high-performance computing and enterprise networks, overlapping…