Dell Technologies, Inc.
The company's bullish outlook came during its fiscal 2027 second-quarter earnings call, where Chief Operating Officer Jeff Clarke pointed to the rapid expansion of AI workloads and Dell's growing order pipeline.
Dell booked a record $60.9 billion in AI orders during the quarter and ended the period with a $95 billion AI backlog. Over the past four quarters, the company booked $131.7 billion in orders, while its five-quarter pipeline continued to grow sequentially.
Clarke said the opportunity extends well beyond training AI models.
"Agentic demand is reshaping the data center and the underlying infrastructure," Clarke said, adding that inference-driven token demand could grow 87 times to 3,600 quadrillion tokens by 2030.
AI Could Drive 75% of Data Center Demand
Dell expects training demand to increase fivefold to 850 zettaflops by 2030, while enterprise agentic AI could become the largest workload by 2028.
More broadly, Clarke said Dell expects AI to account for 75% of all data center demand by 2030, requiring an additional 200 gigawatts of power.
Dell believes roughly half of that incremental data-center power demand will come from neocloud providers, sovereign customers and enterprises - markets where it already has a significant presence.
"If you look at that math, we think the opportunity in front of us is more than a trillion dollars over that timeframe," Clarke said.
He added that Dell's engineering expertise, global deployment capabilities and customer support give it an advantage as AI infrastructure becomes increasingly complex.
"We believe we're well-positioned," Clarke said, adding, "We believe that our model is differentiated, that our engineering is differentiating ourselves with every customer that we interact with."
"The scale of our deployment capabilities is unmatched globally," he said.
Dell Earnings Crush Estimates, Revenue Surges
Dell Technologies posted adjusted diluted EPS of $7.04, comfortably topping Wall Street's $4.91 estimate by about 43%.
Revenue reached $46.97 billion, exceeding the $44.95 billion consensus forecast and jumping from $29.78 billion a year earlier.
Looking ahead, Dell expects third-quarter adjusted EPS of $6.50, well above analysts' $4.49 estimate, while revenue is projected at $49 billion, compared with the $41.43 billion consensus.
Price Action: Dell shares closed at $425.00 on Tuesday, down 6.98%, but surged 8.01% to $459.03 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Dell ranks in the 99th percentile for Momentum, with its stock showing positive trends across short-, medium- and long-term time frames.
