What Dell and Nvidia just proved to the AI stock haters

In the course of two short weeks, tech titans Dell (DELL) and Nvidia (NVDA) have managed to stomp on the hearts of the many AI stock bears who spew the AI is peaking thesis.

The proof is in the numbers, more importantly the long-term outlook numbers.

Dell shares rose nearly 10% in pre-market trading today as the server and PC maker issued fiscal year 2027 revenue guidance some $25 billion above analyst estimates. The company’s ticker page is the most visited on the Yahoo Finance platform.

For perspective on how impressive that guidance is, Macy’s (M) is estimated to report $22 billion in sales…for all of 2026!

“Guidance embeds supply constraints leaving potential for upside. Momentum should sustain ahead, driven by infrastructure modernization and expanding enterprise AI adoption. Dell’s broad portfolio, engineering, deployment expertise, financing availability and supply-chain scale are driving share gains,” Citi analyst Asiya Merchant said.

Driving the strong guidance was a strong fiscal second quarter. Sales surged 58% from the prior year to a record $47 billion. Earnings per share skyrocketed 273% from the prior year.

The blockbuster financial performance was spearheaded by explosive, persistent demand for AI-optimized server infrastructure, as enterprise customers and cloud hyperscalers expanded their data center footprints.

“There’s an old Texas saying I may have just made up… If you keep growing EPS 200%+ y/y something good will happen,” Dell founder Michael Dell remarked in an X post.

The ultra bullish vibe was seen at Dell’s friend Jensen Huang’s Nvidia.

It served up a rare long-term outlook that blew everyone on the Street away.

Nvidia said after reporting its fiscal second quarter earnings that it sees 70% revenue growth for fiscal year 2028. This was above analyst forecasts for 45% growth. The sales gain would be larger if not for memory chip shortages, said Huang.

To be sure, the company’s fiscal second quarter warranted a strong long-term outlook that may end up proving conservative.

Nvidia saw adjusted earnings per share of $2.22 on revenue of $96.2 billion. These were better than the $2.09 a share the Street had expected and revenue of $92.3 billion.

Nvidia’s Data Center revenue, which includes Hyperscalers and AI Clouds, Industrial, and Enterprise (ACIE), came in at $89 billion versus a projected $85.8 billion.

Edge Computing, which includes Nvidia’s other businesses, such as physical AI and gaming, brought in $7.2 billion. Analysts were expecting $6.6 billion.…Read more by Brian Sozzi