AI Stocks
Dell Fiscal Q1: Agentic AI Creates Tailwind for Traditional Servers and Storage
Dell put up a massive beat this evening with analysts calling for growth of 51.3% compared to 87.5% reported for revenue of $43.8 billion. This evening, Dell’s management team admitted they did not foresee the incoming boom that agentic AI is causing in both traditional servers and their storage and services attach rates, stating: “I didn’t — we didn’t know this in October. This is a completely new marketplace. That's being driven by putting intelligence in every workflow and every part of knowledge work on the planet today, and we're just beginning.” The report is being celebrated after hours – and for good reason. It’s not every day that you see a beat/raise of this magnitude, and at scale. To remain balanced, there were some concerns on the call that the current quarter could reflect a pull forward, to where some customers are buying ahead to secure supply and avoid future price increases. The answer to this concern is the pipeline exceeds historic norms, demand is broadening across many customers, and management repeatedly emphasized “We have a supply issue. It is not a demand issue for us.” My take is that what would have been a pull forward in the past, is now sheer scarcity in the AI economy.
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