Dell's AI Server Backlog Hits $95B, NVIDIA Revenue Doubles

Key Takeaways

• Dell's AI server backlog reached a record $95 billion, with the company expecting $74 billion in AI server sales in fiscal 2027, triple the fiscal 2026 level.
• NVIDIA reported Q2 fiscal 2027 revenues of $96 billion, doubling year over year, with Data Center revenues up 117% to $89 billion.
• Morgan Stanley forecasts AI hyperscaler capex growth slowing from 93% in 2026 to 14% in 2028, signaling a shift from hardware to software spending.
• Volato Group secured a $1.2 billion AI infrastructure deal using AMD MI355X and MI455X GPUs, with deployments starting in Ohio by end of 2026.
• Power shortages remain the biggest constraint on AI data-center growth, with a 57 gigawatt shortfall expected between 2026 and 2028.
• Local opposition has delayed or canceled $286 billion of U.S. data-center projects since 2025, according to Morgan Stanley.
• Companies using AI report a 9.6% average productivity gain and about 100 basis points of margin expansion through 2027.
• Barracuda launched AI Data Security protecting data across 1,300+ generative AI apps including ChatGPT and Gemini.
• Nvidia's new platform helps banks control AI agents through permission-based execution, with 100+ organizations participating.
• Singapore's central bank warned that AI spending is straining semiconductor and electricity supplies, increasing global financial stability risks.

Oracle vs Dell: Which AI infrastructure stock has better upside

Oracle has $638 billion in remaining performance obligations, up 363% year over year, but free cash flow was negative $23.7 billion in fiscal 2026. The company expects fiscal 2027 net cash capital expenditure of roughly $70 billion and plans equity issuances that may cause dilution. Dell benefits from AI infrastructure spending without data center capital risk. Its AI server backlog reached a record $95 billion with $60.9 billion in AI orders. Dell raised fiscal 2027 revenue guidance to $192 billion and non-GAAP EPS guidance to $25.50.

Dell AI server backlog hits $95 billion with strong growth ahead

Dell Technologies is a major player in AI infrastructure, providing servers, networking, and storage solutions. Its Infrastructure Solutions Group revenue rose 89% year over year to a record $31.8 billion in the second quarter of fiscal 2027. AI server orders reached $60.9 billion in the quarter, pushing the backlog to $95 billion. Dell expects to sell $74 billion in AI servers in fiscal 2027, triple the fiscal 2026 level. Goldman Sachs estimates the AI server market could generate $1.24 trillion in revenue by 2030.

Dell AI server backlog balloons to $95 billion amid strong demand

Dell Technologies reported a record $31.8 billion in Infrastructure Solutions Group revenue in the second quarter of fiscal 2027, an 89% year-over-year increase. The company recognized $16.4 billion in AI server revenue during the quarter and received $131.7 billion in AI server orders over the past 12 months. Dell's AI server revenue share grew to 17% in the first quarter of 2026, up from 5% a year earlier. The stock jumped 347% in 2026 and trades at 32 times trailing earnings.

Dell AI server backlog at $95 billion could drive huge investor gains

Dell's AI server backlog has reached $95 billion and is expected to fuel strong growth over the next five years. The company's AI server sales have been growing at an annual rate of 50%. Dell received $131.7 billion in AI server orders over the past 12 months and expects to sell $74 billion in AI servers in fiscal 2027. Analysts project Dell's earnings could reach $65.93 per share by fiscal 2031, nearly triple the current stock price.

Dell AI server backlog hits record $95 billion as stock surges

Dell Technologies is central to the global AI infrastructure ecosystem with high-end servers, networking, and storage solutions. AI server orders hit a record $60.9 billion in fiscal Q2, and the backlog grew to $95 billion. Dell's AI server revenue share increased to 17% in early 2026 from 5% a year earlier. Goldman Sachs raised its AI server market revenue estimate to $1.24 trillion by 2030. Dell stock has risen 347% in 2026 and trades at a forward earnings multiple of 21.

NVIDIA and Astera Labs Lead AI Stock Surge

AI is growing fast, and investors are watching stocks like NVIDIA and Astera Labs. NVIDIA reported second-quarter fiscal 2027 revenues of $96 billion, doubling from last year. Its Data Center revenues reached $89 billion, up 117 percent year over year. Astera Labs saw revenues jump 104 percent to $392.4 million, driven by strong demand for AI connectivity products. Both companies are key players in building AI infrastructure.

Top AI Stocks to Watch as Industry Grows

Rapid advances in generative AI and high-performance computing are pushing AI adoption across many industries. NVIDIA reported expected third-quarter fiscal 2027 revenues of $108 billion and expects fiscal 2028 revenues to grow about 70 percent. Dell also stands out as a major beneficiary of enterprises and cloud companies building AI infrastructure. Astera Labs expects third-quarter 2026 revenues to rise roughly 40 percent sequentially. Chinese developer Alibaba is challenging U.S. tech giants with cheaper AI models.

Amphenol's AI Growth Faces Tough Competition

Amphenol is seeing strong AI-driven sales growth, with IT datacom revenues rising 89 percent year over year. Its adjusted operating margin expanded to 29.8 percent, and adjusted EPS rose 67 percent to $1.35. However, Marvell Technology is competing with strong data-center growth and a fiscal 2027 revenue outlook near $12 billion. TE Connectivity also poses a challenge with record orders of $5.7 billion and a 1.1 book-to-bill ratio. Amphenol raised its expected 2026 CommScope revenues to $4.6 billion.

Morgan Stanley Predicts AI Investment Shift

Morgan Stanley says the AI investment cycle may shift from hardware to software over the next two years. It forecasts hyperscaler and neocloud capital expenditure growth slowing from 93 percent in 2026 to 14 percent in 2028. Power remains the biggest bottleneck, with a 57 gigawatt shortfall expected between 2026 and 2028. Local opposition has delayed or cancelled USD 286 billion of U.S. data-center projects since 2025. Companies using AI are already reporting a 9.6 percent average productivity gain.

AI Spending Growth Slowing, Shift to Software

Morgan Stanley forecasts AI spending growth will slow sharply, from 93 percent in 2026 to just 14 percent in 2028. This signals a likely shift from heavy spending on chips and data centers toward software and AI applications. Power shortages remain the biggest constraint on data-center development. The brokerage expects a transition period over the next 6 to 12 months, with opportunities broadening to early software providers. AI adopters report a 9.6 percent net productivity increase and about 100 basis points of margin expansion through 2027.

DensityAI in Late-Stage Talks to Raise Hundreds of Millions

AI chip startup DensityAI is in late-stage discussions to raise hundreds of millions of dollars in a new funding round. The company is attracting significant investor interest as demand for AI hardware grows. Amazon has responded to the news regarding the potential deal. The funding round highlights continued strong interest in AI chip makers.

Barracuda Launches AI Data Security for Smaller Groups

Barracuda Networks introduced Barracuda AI Data Security to help smaller organizations manage AI risks. The tool protects data across over 1,300 generative AI apps like ChatGPT and Gemini. It uses the BarracudaONE platform and Barracuda IQ AI engine to block threats and sensitive data leaks. The solution offers centralized controls designed for managed service providers and IT teams.

Meta Shares Rise as Muse AI Agent Debuts

Meta stock climbed as the company debuted its new AI agent called Muse. Spear Invest founder Ivana Delevska discussed the adoption of Meta's AI tool on 'Making Money.' The conversation also covered competition among CPU manufacturers. The debut of Muse highlights growing interest in Meta's AI efforts.

Study Examines Energy and Accuracy Trade-offs for Local AI Models

A new study explores how small local AI models can extract information efficiently. Researchers found that batching data cuts energy use by 38 to 85 percent without losing accuracy. The choice between text and image models depends on the document type. Neural OCR uses 17 times more energy than classical OCR methods.

Singapore Warns Financial Risks Rise Due to AI Spending

Singapore's Monetary Authority warned that financial stability risks are increasing globally. Higher government borrowing and heavy AI investment are pushing up the cost of capital. AI spending is straining semiconductor and electricity supplies. The authority noted that rapid AI infrastructure growth is creating new risks for banks and investors.

Volato's Alignment Engine secures $1.2 billion AI infrastructure deal

Volato Group's Alignment Engine subsidiary signed $1.2 billion in AI infrastructure orders with a large AI customer. The deal includes about $133 million in contractual prepayments, with roughly $40 million due right after signing. The deployments will use AMD MI355X and MI455X GPUs at a planned Ohio campus. The initial deployment starts December 31, 2026, and a second phase begins June 30, 2027. The orders are structured as four-year take-or-pay agreements.

EXAONE Demand 1.0 improves AI demand forecasting with new model

EXAONE Demand 1.0 is a time series foundation model built specifically for demand forecasting. The model uses 11.3 million series and 48.4 billion observations from 73 data sources. It includes a demand-aware adapter with branches for smooth, intermittent, erratic, and lumpy demand types. A router uses eight statistics to decide how much each branch contributes. Both versions of the model outperformed 36 other time series models on 22 test datasets.

Nvidia helps banks control AI agents with new platform

Nvidia launched a platform that helps banks prevent AI agents from exceeding their authority. The system separates instructions from execution, so an agent cannot access tools beyond its permissions. More than 100 organizations are working with the platform's technologies. The design resembles zero-trust cybersecurity, where identity and permissions are continuously checked. This approach lets financial institutions delegate narrow tasks while keeping the ability to inspect and interrupt execution.

Sources

• ORCL vs. DELL: Which AI Infrastructure Stock Has Better Upside Now?
• Dell's AI Server Backlog Has Ballooned to $95 Billion. Here's What a $1,000 Investment Today Could Be Worth by 2030
• Dell's AI Server Backlog Has Ballooned to $95 Billion. Here's What a $1,000 Investment Today Could Be Worth by 2030
• Dell's AI Server Backlog Has Ballooned to $95 Billion. Here's What a $1,000 Investment Today Could Be Worth by 2030
• Dell's AI Server Backlog Has Ballooned to $95 Billion. Here's What a $1,000 Investment Today Could Be Worth by 2030
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• AI investment cycle may shift from infrastructure to software, Morgan Stanley
• AI spending growth seen slowing sharply by 2028, marking shift towards software: Morgan Stanley
• Update: Market Chatter: AI Chip Startup DensityAI in Talks to Raise Hundreds of Millions of Dollars in Funding Round
• Barracuda launches AI data security for smaller organizations
• Meta jumps amid Muse AI debut
• The Right Information Extraction Pipeline Depends on the Document: Accuracy-Energy Trade-offs for Small, Local Models
• Singapore Financial Stability Risks Rise As AI Investment, Fiscal Pressures Lift Cost Of Capital
• An AI customer commits about $133 million in prepayments for Ohio computing capacity
• EXAONE Demand 1.0: A Time Series Foundation Model for Demand Forecasting
• Nvidia Gives Banks a New Way to Stop AI Agents From Crossing the Line