In the span of just two weeks, tech giants Dell and Nvidia have given investors a clear answer to those who believed the artificial intelligence boom was running out of steam. The latest financial updates from both companies show that enterprise demand remains as strong as ever, silencing market bears with massive long term forecasts that far exceeded expectations.
Dell led the charge after posting its fiscal second quarter results, which saw sales jump 58% year over year to a record $47 billion, while its earnings per share surged by 273%. Even more impressive was its future outlook, as the company issued fiscal year 2027 revenue guidance that sat roughly $25 billion higher than Wall Street estimates. That guidance beat alone is larger than the total annual sales of many major retail corporations. Company founder Michael Dell joked on social media, “There’s an old Texas saying I may have just made up … If you keep growing EPS 200%+ y/y something good will happen,” pointing to the massive momentum behind their server business.
The surge in sales is largely coming from hardware built specifically to handle complex artificial intelligence workloads. As companies expand their data center footprints, server makers are seeing unprecedented demand. Citi analyst Asiya Merchant noted, “Guidance embeds supply constraints leaving potential for upside,” while adding that, “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.”
Nvidia delivered a similarly optimistic tone when it reported its own quarterly figures. The semiconductor leader expects 70% revenue growth for fiscal year 2028, easily topping Wall Street expectations of 45% growth. Its second quarter adjusted earnings per share reached $2.22 on $96.2 billion in total revenue, outperforming analysts forecasts across the board. The vast majority of that revenue came directly from its Data Center division, which pulled in $89 billion compared to the $85.8 billion that experts had anticipated.
Looking forward to its fiscal third quarter, Nvidia projected sales between $105.8 billion and $110.1 billion, which would mark its first time crossing the $100 billion threshold in a single quarter. Citi analyst Laura Chen wrote in a note, “Nvidia’s earnings call reinforced exceptionally strong AI growth,” confirming that enterprise demand shows no signs of slowing down anytime soon. Both companies have made it clear that its long term growth story is still firmly intact.
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