DELL Stock Soars After Earnings, AI Opportunity Shows No Signs of Slowing

Added: 2026-05-31

[00:00:00]And Dell is soaring to a new all-time high today after a blowout quarter with results driven by revenue growth of nearly 90% and an increase of more than 750% in AI-optimized servers revenue. The company's COO highlighted the role of AI saying quote, "The opportunity shows no sign of slowing." That means it's time for our 360 round. We'll bring in our panel to take a closer look at the numbers. Joining us today Michelle Connell, president and owner of Porsche Capital Management, and Olivia Blanchard, research director at Futurum.

[00:00:29]Great to have you both with us.

[00:00:31]Michelle, I'll start with you. I mean, these numbers came across the wire yesterday and we were covering them live on my other show and the amount of times that I said the word record, I lost track of. You know, walk me through what you view as the highlights here.

[00:00:46]>> I think the new phrase today is AI super cycle. I've never heard that used before, but as I'm reading the analyst write-ups on Dell, that seems to be the the phrase. And maybe that's what we're in when we're seeing these blowout earnings as you said and AI servers sales being up over 757% year over year. They're fantastic.

[00:01:13]And the backlog has gone up another $10 billion. We're at about $50 billion. And to take the earnings per share from about $12 expected for the year to $17, I think that's pretty amazing.

[00:01:29]>> And Olivier, this stock was already up triple digits year-to-date before we got this report. Now we're still seeing yet another massive move to the upside here.

[00:01:37]Does this quarter or should this quarter fundamentally reset how investors are valuing Dell going forward?

[00:01:45]>> Hey Marley. No, I don't think it should reset anything, but I think it just sort of validates Dell's trajectory. Uh one of the the the secret weapons that Dell has isn't actually its technology, it's not its network, it's not its its ability to sell all this full stack of AI that it has. It's also Jeff Clark. Uh ironically enough, I I have so much faith in this guy um and how he's able to basically cut through a lot of the BS and get to what's needed that he's he's a big reason why this is uh why Dell is executing as quickly and as well as it is.

[00:02:21]Um but fundamentally beyond that, I think that Dell has has all the right moves, right? It's it's one of the very few rare companies that has the full AI stack all the way from the PC on the desktop, so basically the endpoint, all the way to the cloud with the servers.

[00:02:34]They've made the right investments, the right technology, they have the right partners.

[00:02:38]And obviously, I think they just reached over 5,000 customers uh in this AI pipeline.

[00:02:44]Uh that's government, it's sovereign governments, it's it's private and public institutions. Uh people can't get on in line long fast enough uh to get uh to get all of these uh these AI servers and these AI solutions uh handled. And part of it is also uh Dell's AI factory, which is sort of like the the unifying platform between the hardware and the software, that I think is also one of their uh uh base selling points at scale.

[00:03:11]>> I like Jeff Clark cuz as a journalist, he gives really short usable quotes. So he's highly quotable. So I also like him, but for a different reason. But Michelle, I want to talk about one of the quotes. Obviously, I said it before we started talking about this AI opportunity not slowing down. And Olivia just pointing out that Jeff Clark really a big driver here behind this. We saw more than 750% 757 to be exact year-over-year growth in terms of AI server revenue. As we look at Dell and as you look at Dell going forward, are you thinking of them now more as closer to being an AI infrastructure company than more of a traditional PC company?

[00:03:48]>> Well, we have to also keep in mind that 60% of their sales still comes from the non-server or what they call called the client service group. And obvi- at the same time, the other 40% is growing exponentially with the AI servers and the non-AI servers. So, I think Ol- Oliver brings up some really good points in terms of the managements in place. I will also say that they've been phenomenal with their supply chain, so they haven't been caught unawares in terms of memory and having an issue there not having not enough of it and not having to pay up for it. So, their margins have stayed strong. So, they're going to have the demand and they also have the infras- their own infrastructure and supply chain in place, so they can continue delivering what that large and increasing client base wants and needs.

[00:04:43]>> And Olivier, before we have to say goodbye, I want to ask about this guidance here because that full-year revenue raise, they raised it by more than $25 billion just for a single quarter here. I I I checked it on when it came across the wire, I actually went into the report to make sure that the numbers were correct because I didn't want to misreport them. Have you ever seen a guidance revision that was of that magnitude from a company that is the size of Dell?

[00:05:08]>> No, I haven't. Um I haven't checked, so I I don't know, but it's it's pretty extraordinary. Uh but everything that Michelle said is is spot-on though.

[00:05:17]Um I think that that Dell is definitely transitioning uh from from how people used to think about Dell as a as a PC-first kind of company uh as a a really kind of like a a broad full-stack AI company. Um and we'll continue to see really strong sales in the endpoints, so the PCs and all devices that allow users, humans to interact with with technology, um but but building out that entire stack uh of of AI support and AI capability at scale is is definitely something that's transforming Dell.

[00:05:50]Um and obviously we're not seeing any slowdown there. Even with pushback against data centers out in the public, there are a lot of other ways and other places where AI can live as well.

[00:06:00]And one thing that I would point out before we leave that people should look for is also the expansion of AI to the edge. So AI PCs, AI devices that sit on your desktop that can run a lot of inference locally as opposed to the cloud. So you're going to see an expansion of Dell's ecosystem, hardware ecosystem into more local and and edge type spaces.

[00:06:20]>> Well, really appreciate you both being with us today to take a closer look at this 28 plus percent move to the upside for Dell. Michelle Conant from Portola Capital Management and Olivier Blanchard from Vuture. I really appreciate you both being with us.