Dell Jumps 10% After $25 Billion Guidance Beat as Nvidia Targets 70% 2028 Growth
Updated
Updated · Yahoo Finance · Sep 2
Dell Jumps 10% After $25 Billion Guidance Beat as Nvidia Targets 70% 2028 Growth
3 articles · Updated · Yahoo Finance · Sep 2
Summary
Dell shares rose nearly 10% premarket after the company issued fiscal 2027 revenue guidance about $25 billion above analyst estimates, extending a broader rally in AI-linked hardware names.
Record demand for AI-optimized servers powered the outlook: Dell's fiscal second-quarter sales climbed 58% to $47 billion and earnings per share surged 273% from a year earlier.
Nvidia reinforced that message by forecasting 70% revenue growth for fiscal 2028, far above the 45% analysts expected, even as CEO Jensen Huang said memory shortages are capping potential upside.
Its latest quarter also beat Wall Street on multiple fronts, with revenue of $96.2 billion, adjusted EPS of $2.22, data-center sales of $89 billion and third-quarter guidance topping consensus.
Together, the updates undercut the view that AI spending is peaking, pointing instead to sustained enterprise and hyperscaler investment in data-center infrastructure.
Tech giants are spending billions on AI infrastructure, but will the lack of measurable enterprise profits eventually trigger a massive market collapse?
With AI data centers hoarding memory chips, will everyday gadgets like smartphones and PCs face crippling price hikes in 2027?
As gigawatt-scale AI facilities drain local power grids, could widespread government bans on new data centers suddenly halt the AI boom?