Dell Stock Surges 32% in One Day. Big Revenue From AI Servers Stuns Analysts (cnbc.com) 50
Dell's stock skyrocketed 32.76% on Friday, "its best day ever," reports CNBC, after Dell "reported its fastest pace for revenue growth for any period since returning to the public market in 2018..."
"Shares are now up 234% in 2026." Dell, which reported first-quarter earnings after the bell on Thursday, saw a flood of artificial intelligence-related demand for its servers, which contain graphics processing units from companies like Nvidia. Quarterly revenue soared nearly 88% year over year, with AI server revenue alone increasing 757% from a year earlier to $16.1 billion...
Ben Reitzes, head of technology research at [research/investment firm] Melius, said he'd "never seen anything like" Dell's latest quarter. "They beat every line in the model, so this wasn't just AI, it was great execution," Reitzes told CNBC's "Squawk on the Street." "They beat whatever we would've thought...."
Morgan Stanley wrote that while they expected a clean beat and raise this quarter, they're "eating our humble pie" off the back of Dell's results. "We got this one wrong, and our model/PT are under review," the analysts wrote. "This was — across the board — one of the most impressive quarters we've seen in our time covering Hardware, especially in the context of what is happening across the component universe."
"Shares are now up 234% in 2026." Dell, which reported first-quarter earnings after the bell on Thursday, saw a flood of artificial intelligence-related demand for its servers, which contain graphics processing units from companies like Nvidia. Quarterly revenue soared nearly 88% year over year, with AI server revenue alone increasing 757% from a year earlier to $16.1 billion...
Ben Reitzes, head of technology research at [research/investment firm] Melius, said he'd "never seen anything like" Dell's latest quarter. "They beat every line in the model, so this wasn't just AI, it was great execution," Reitzes told CNBC's "Squawk on the Street." "They beat whatever we would've thought...."
Morgan Stanley wrote that while they expected a clean beat and raise this quarter, they're "eating our humble pie" off the back of Dell's results. "We got this one wrong, and our model/PT are under review," the analysts wrote. "This was — across the board — one of the most impressive quarters we've seen in our time covering Hardware, especially in the context of what is happening across the component universe."
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The sweet hardware only happens when the company folds... big outfits that are still open like that scrap the old hardware (y'know, those 3-month old GPUs/NPUs) into the mobile 'information getter-ridder-ofers' (little Ron White for ya).
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Something Something Peanut Farm (Score:5, Informative)
One big winner in the Dell pop is President Donald Trump, who became a shareholder in the first quarter, according to filings with the U.S. Office of Government Ethics. At a White House event earlier this month, Trump said, “Go out and buy a Dell.”
Re:Something Something Peanut Farm (Score:5, Informative)
One big winner in the Dell pop is President Donald Trump, who became a shareholder in the first quarter, according to filings with the U.S. Office of Government Ethics. At a White House event earlier this month, Trump said, “Go out and buy a Dell.”
This also couldn't have hurt... Dell wins a $9.7 billion Pentagon software deal after donating to Trump accounts [cnbc.com]
Possibly less dubious than this, though: The White House Intervened to Get a $620 Million Deal for a Company Tied to Donald Trump Jr. [propublica.org] - company is Vulcan Elements.
Or... just Google trump sons government contracts [google.com]
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Dear lord, why would Hillary's emails allow this all to happen?
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Hillary beat herself. She assumed she was going to carry some of the Midwest Northern states, didn't campaign there at all and it cost her in the end. The deplorables comment certainly didn't help either. The email server was just another stick on the proverbial camel's back. I mean, really, why didn't she just have a government email address to handle everything. You know, like every one else in government.
Obviously we've reached new lows since then, what with Trump's team using Signal (seriously, dumb fuc
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"You know, like every one else in government."
Not everyone else in government was Secretary of State, where lots of classified got routed into her "server in a closet." Of course that is "insecure" and an actual violation of the espionage act, and no, you don't have to break those laws intentionally, its more like negligent homicide when you don't take proper care when wielding a weapon or driving a car without due regard for safety. You don't have to intend to violate the espionage act, you can do it jus
Re:Something Something Peanut Farm (Score:5, Insightful)
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'Not everyone else in government was Secretary of State... "server in a closet."'
Why do you hate Colin Powell so much?
"more like negligent homicide when you don't take proper care when wielding a weapon or driving a car without due regard for safety"
In practice, the email at State was provably breached while the private server was not.
" You don't have to intend to violate the espionage act"
You don't have to intend to help a foreign government to harm the US to violate the Espionage Act, but your disclosure
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I mean, really, why didn't she just have a government email address to handle everything. You know, like every one else in government.
She was advised to do this by her predecessor -- a Republican.
If you think that everyone in government is only using their goverment-issued email addresses to conduct business and not using side channels, well, there is some prime real estate in South Florida I would like to interest you in.
Re:Something Something Peanut Farm (Score:5, Insightful)
Dear lord, why would Hillary's emails allow this all to happen?
Maybe they were on Hunter's laptop? :-)
On a related theme, imagine Biden or Obama doing just 10%, or any one, of the sketchy and/or self-serving things Trump has done / is doing and imagine how apoplectic Republicans, and Trump himself, would be.
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Funny how everything ends up being a president (lower case on purpose) thing.
What're you going to gripe about (or who are you going to blame/accuse) when someone else is the Butt In Chair?
Re: Something Something Peanut Farm (Score:4, Insightful)
You are out of your mind with this false equivalency. We are witnessing insane levels of self-dealing. I don't think anything DJT does is in the best interest of America. He is nothing short of an opportunistic traitor.
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You are out of your mind with this false equivalency.
For some people's beliefs and values, whataboutism is all they've got to offer.
Well, that and projecting.
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Be nice if we all ditched the "what about them" and shoot for a higher standard of government employee, so we don't keep revisiting this every administration. If anyone failed it'll be because of circumstances beyond their control and not one of moral character.
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I seem to remember there being other presidents who over time sat in The Chair... unless I had a stroke at some point.
If the other Presidents didn't make money from oil and stuff, we would've already had BEVs and even hydrogen cars years ago.
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Having Trump push contract doesn't hurt (Score:4, Informative)
Here's how stupid this all is (Score:2)
Dell's stock rockets 32% because they're selling more AI-related servers than ever before. However, the only reason they are selling more AI-related servers than ever before is because of Nvidia, yet Nvidia's stock has barely inched upward in months. These two situations cannot both be correct
If Dell is selling servers out the wazoo because of Nvidia and its stock soars, then Nvidia must also be sellling GPUs out the wazoo and its stock shoulld likewise soar. Saying we're at peak AI which is why Nvidia ca
Re:Here's how stupid this all is (Score:4, Insightful)
Exactly. This nicely shows the sheer irrationality of things. We can only hope that the upcoming crash will completely destroy the reputation of all these idiots and we get some sanity back in business decisions.
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What upcoming crash? The same kinda crash like when businesses realized they can't replace meat-sacks on the line with robots? Funny how that worked out!
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That crash where they need tons of dumb money to keep things going and bring in about 20% revenue, i.e. 80% loss. That crash.
At this time they would need to increase profits about 10x to make them a worthwhile investment. If they can keep costs constant. That factor will go up. Can they do it? Not a snowball's chance in hell.
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But, people didn't just stop using the internet... speculative mania, rapid capital inflows, and unsustainable valuations.
(Wiki)
"As growth in the technology sector stabilized, companies consolidated; some, such as Amazon.com, eBay, Nvidia and Google, gained market share and came to dominate their respective fields. The most valuable public companies are now generally in the technology sector."
The same thing is gonna happen with AI until it's installed in literally every single thing you own.
Maybe it'll be f
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Which makes sense. Whilst it's a bit stupid that the analysts didn't expect Dell to be selling servers with NVIDIA, it's not 100% stupid. It could have ended up that the cloud providers were providing all the AI for all the companies. It could have ended up that some Chinese server vendors were winning and Dell got almost no business. Now we know that Dell's succeeding in selling servers on the back of AI, so now their valuation goes up.
Re: Here's how stupid this all is (Score:1)
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You need the servers to generate the support contracts. Without Nvidia, or AMD, there's no servers.
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NVidia or AMD don't make the servers, Dell or HP make the server and put an Intel or AMD CPU in it with an NVidia or ATI/AMD GPU (technically, Apple still makes servers).
Dell Servers Haven't Degraded Like Their Laptops (Score:4, Interesting)
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Past few years? Dell has been turds floating in the toilet bowl since the early 00s. I've never had a Dell laptop replaced because it was slow, it was always because something in them failed. Now sure HP isn't any better, but still, I remember getting criticised for buying from this startup company no one ever heard of called MSI, it's the only old laptop I still have laying around working aside from a few Surface devices (but they don't count since they have all been replaced under warranty at some point).
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After my company bought one Dell server and realized that it needed stupidly expensive non-standard rails, we bought Supermicro servers. They have been rock solid.
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I have a Dell laptop from 2020, it's wretched. The cooling solution is entirely underpowered, causing the CPU to thermal throttle. I ended up removing the bottom of the case to get more airflow. After 3 years the keyboard started giving out - the keyboard I barely even used, because I always kept it docked. It never managed to wake up from sleep properly, it was 50/50 whether it would wake up or not.
The whole thing flexes like it's doing the worm when you pick it up. The stiffest thing in there seems to be
Gold Rush (Score:5, Insightful)
The AI Bros will point to this as evidence artificial intelligence is the real deal and there's money to be made by utilizing it. But Dell is profiting off selling hardware, like Nvidia. Why go on a wild goose chase for supposed riches when you can make money hand over fist selling shovels to rubes in suits.
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Indeed. Meanwhile the indications that LLM-Type AI is not actually a game-changer are raising.
That change alone ... (Score:2)
... is a reliable indicator for insanity at work. People have lost all sense when they hear "AI". Not good.
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People have lost all sense when they hear "AI".
The even shout "aieeeeee!" when some something scares them.
At some point... (Score:4, Funny)
I hope to check here and _not_ see every post being about AI (y'know... normal tech news, like it used to be)... AI is going to take over every job you can imagine... move on! It's not going to happen by tomorrow, but it's gonna happen. Did companies turn around and say that they don't want to have these robots doing stuff on the assembly line?
And, it will change the landscape 1,000%... because you work in an office you think you're safe? AI can itemize and enter receipts 1,000 times faster than you can even read them.
Factories aren't going to even need lights... the 'bots can see fine in the dark with machine vision.