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Enterprise software budgets are coming under pressure due to the weight of scaling costs for artificial intelligence (AI) tokens. This financial pressure is prompting some companies to consider shifting away from consumption-based cloud services toward localized on-premises hardware infrastructure.
Heading into the Q2 print, I expected another full-year guide increase. Dell raised FY27 sales guidance by $25 billion. I did not expect anything close to that. ISG's operating margin jumped to 15.0% from 8.8% a year ago. I was expecting AI servers to keep dragging margins lower. The AI backlog jumped $43.7 billion sequentially to $95 billion.
Dell delivered a standout Q2, driven by surging AI server orders and record AI-driven revenue backlog. Q2 saw record revenues of ~$47B, operating income of $5.4B, and free cash flow of $986M, down heavily due to higher CapEx spending. I upgraded shares of Dell from 'Sell' to 'Buy,' citing robust AI infrastructure demand, record AI server orders, and potential for increased stock buybacks.
AlphaGrep UK Ltd acquired a new stake in Dell Technologies Inc. (NYSE: DELL) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 2,055 shares of the technology company's stock, valued at approximately $887,000. A number of other institutional investors and hedge
Dell Technologies hits a 52-week high as record AI server orders, a $95B backlog and broad IT refresh demand fuel hopes for further stock upside.
NVIDIA, Amazon, Palantir, Dell and Fortinet stand out as founder-run companies with strong vision, innovation and long-term growth drivers.
Dell Technologies is rated Buy with a $570 price target, reflecting strong AI-driven revenue and improving earnings quality. Q2 FY27 showed ISG operating income up 56.5% sequentially, driven primarily by margin expansion rather than just revenue growth. Enterprise AI adoption is accelerating, boosting storage and networking attachment rates and shifting the profit mix toward higher-margin Dell IP.
The three biggest AI server names are separating along a new fault line at midday Friday.