Oracle's management specifically named Dell, listing it as a direct beneficiary of the company's AI capital expenditures ($95 billion). Coupled with RBC Capital's first coverage and a "Outperform" rating, analysts highlighted its strong moat in the AI infrastructure supply chain. As a result, Dell's stock surged 11.98% in a single day, hitting an all-time high, with its market capitalization surpassing $360 billion and its year-to-date gains approaching 350%.
Oracle's management team named names at the earnings call.$Dell Technologies (DELL.US)$As a core supplier, coupled with RBC Capital's first-ever coverage and a "Outperform" rating, Dell Technologies' stock price hit a new high.
On September 11, U.S. Eastern Time, the three major U.S. stock indexes all rebounded, with capital flowing back into the AI hardware and semiconductor sectors. Dell, as a leading stock symbolizing the deployment of AI computing power, surged to the top of the gains.
Earlier, on September 10 after the U.S. stock market closed, Oracle's management reiterated at the earnings call that its capital expenditure plan for fiscal year 2027 amounts to between $90 billion and $95 billion, earmarked for expanding AI data centers and related infrastructure, while explicitly naming Dell and HPE as the primary recipients of this spending.
On Friday, Dell's stock surged 11.98%, hitting an all-time high and pushing its market capitalization above $360 billion, with year-to-date gains nearing 350%.
Oracle's financial reports provide the most direct order visibility.
Oracle reported strong results after the market closed on September 10. In Q1, its cloud business grew by 121%, exceeding expectations, with RPO reaching $664 billion, and the company raised its full-year guidance.
At the earnings call, management reiterated that capital expenditures for fiscal year 2027 will total between $90 billion and $95 billion, with a primary focus on expanding AI data centers, deploying additional server racks, and procuring network equipment.
The pivotal turning point came when Hilary Maxson made a direct statement at the meeting. She explicitly stated that the substantial expenditures would be allocated to core suppliers such as Dell and HPE, earmarked for the procurement of AI server racks, liquid‑cooling systems, and associated networking equipment. This phrasing effectively anchored order visibility at the level of specific vendors.
The substantial AI cloud order backlog disclosed by Oracle in the same period further confirms that enterprise demand for computing power remains in a phase of rapid expansion. For Dell, this means that its order pipeline over the next few quarters has received clear endorsement from downstream cloud giants, significantly enhancing the certainty of earnings realization.
RBC initiates coverage, with a bullish outlook centered on the AI infrastructure cycle.
RBC Capital Markets released a research report on Thursday, initiating coverage of Dell with an "Outperform" rating. Analyst David Paige wrote in the report:
We see no signs of a slowdown and believe Dell will continue to benefit from the multi-year AI infrastructure spending cycle.
Paige also underscored Dell's competitive moat in its supply chain, noting that "its best-in-class supply chain serves as a formidable barrier to entry, particularly during periods of supply disruption, with customers increasingly turning to Dell as a reliable and stable partner amid supply volatility or shortages."
Dell is one of the first vendors to ship NVIDIA's Grace Blackwell NVL72 rack, and its deep partnership with NVIDIA gives it a significant advantage in securing GPU supplies.
The company's AI server customer base has surpassed 6,500, encompassing emerging cloud service providers—including CoreWeave—sovereign buyers, and large enterprises. Over the past three quarters, it added 3,300 new customers, and customer concentration risk continues to decline.
Dell's fiscal second-quarter 2027 earnings report shows that AI server revenue reached $16.4 billion, up 100% year over year; the company's AI server order backlog for the quarter hit a record $60.9 billion, with total AI server orders on hand totaling $95 billion at quarter-end.
Notably, company executives stated during the earnings call that rising costs for components such as memory have driven product price increases, a factor that has been factored into the revised full-year guidance. Earlier, Dell raised its full-year revenue forecast to $192 billion, representing nearly a 70% year-over-year increase.
In addition to fundamental factors, Dell has recently been designated as a constituent of the S&P 100 Index, further enhancing its appeal and investment attractiveness among institutional investors.
Editor/Jeffy