August 29, 2025

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Nvidia, Microsoft, OpenAI News: Dell's $20B AI Forecast

The AI sector is seeing significant activity across multiple fronts. Dell Technologies is increasing its revenue forecasts, now expecting $20 billion in AI server revenue in fiscal year 2026, driven by demand for Nvidia-powered servers from companies like xAI and CoreWeave. This growth is coupled with a PC refresh expected after Microsoft ends support for Windows 10 in October. Despite some analysts expressing caution and a slight dip in data center revenue, analysts generally remain positive on Nvidia, raising price targets with an eye toward the upcoming Blackwell AI chips. Nvidia's Q2 earnings surpassed estimates, reporting adjusted earnings of $1.05 per share on revenue of $46.74 billion, but its data center revenue was lower than expected for the second quarter. Meanwhile, OpenAI's restructuring is facing delays due to ongoing negotiations with Microsoft regarding the extension of their partnership agreement, including disagreements over access to OpenAI's API and intellectual property. A failure to reach an agreement by December 31, 2024, could affect SoftBank's $10 billion investment. In the UK, the government is investing \u00a3573 million in AI for public sector modernization, awarding contracts to Microsoft, Palantir, and UiPath. ASML, a key semiconductor supplier, is positioned to potentially exceed Palantir's market value by 2030. Companies like SoundHound AI, Navitas Semiconductor, and Serve Robotics are also emerging as noteworthy AI stocks. BILL, a financial automation platform, reported strong Q2 results with $383.3 million in sales, driven by AI and product expansion. The AI boom is rapidly creating billionaires, with companies like OpenAI, Anthropic, and Anysphere seeing massive valuation increases. Finally, CrowdStrike is acquiring Onum for $290 million to enhance its AI security capabilities.

Key Takeaways

  • Dell expects $20 billion in revenue from AI servers in fiscal year 2026, driven by Nvidia chips and demand from companies like xAI and CoreWeave.
  • Analysts remain mostly positive on Nvidia, citing the upcoming Blackwell AI chips, despite some concerns about data center revenue.
  • Nvidia's Q2 earnings beat estimates at $1.05 per share on $46.74 billion revenue, but data center revenue was lower than expected.
  • OpenAI's restructuring is delayed due to negotiations with Microsoft over partnership terms, potentially impacting SoftBank's $10 billion investment.
  • The UK government is investing \u00a3573 million in AI for public sector transformation, with contracts awarded to Microsoft, Palantir, and UiPath.
  • ASML, a semiconductor supplier, could surpass Palantir in market value by 2030 due to its critical role in AI chip manufacturing.
  • SoundHound AI, Navitas Semiconductor, and Serve Robotics are highlighted as AI stocks with high-risk, high-reward potential.
  • BILL reported strong Q2 results with $383.3 million in sales, driven by AI and product expansion.
  • The AI boom is rapidly creating billionaires, with companies like OpenAI, Anthropic, and Anysphere experiencing massive valuation growth.
  • CrowdStrike is acquiring Onum for $290 million to enhance its AI-native security operations center.

Dell's AI server sales boost annual revenue forecasts

Dell Technologies increased its yearly revenue and profit predictions because of high demand for its AI servers powered by Nvidia chips. The company now expects $20 billion in revenue from AI servers in 2026, up from $15 billion. Dell's AI servers are used by companies like xAI and CoreWeave. Dell raised its annual revenue forecast to between $105 billion and $109 billion. A PC refresh is also expected after Microsoft stops supporting Windows 10 in October.

Dell's AI server sales boost annual revenue forecasts

Dell Technologies increased its yearly revenue and profit predictions because of high demand for its AI servers powered by Nvidia chips. The company now expects $20 billion in revenue from AI servers in 2026, up from $15 billion. Dell's AI servers are used by companies like xAI and CoreWeave. Dell raised its annual revenue forecast to between $105 billion and $109 billion. A PC refresh is also expected after Microsoft stops supporting Windows 10 in October.

AI server demand drives Dell to raise annual outlook

Dell Technologies raised its annual outlook due to high demand for AI servers and a comeback in PC sales. The company expects $20 billion in AI server revenue in fiscal year 2026. Dell's infrastructure division saw a 44% increase, reaching $16.8 billion last quarter. PC sales are also increasing as companies prepare for the Windows 10 phaseout. AI is helping tech companies like Dell and HP grow.

Dell's AI server sales boost annual revenue forecasts

Dell Technologies increased its yearly revenue and profit predictions because of high demand for its AI servers powered by Nvidia chips. The company now expects $20 billion in revenue from AI server shipments in fiscal 2026, up from $15 billion. Dell's AI servers are used by customers like Elon Musk's AI startup xAI and CoreWeave. The company raised its annual revenue forecast to between $105 billion and $109 billion. A PC refresh is expected after Microsoft ends support for Windows 10 in October.

Dell's AI server sales boost annual revenue forecasts

Dell Technologies increased its yearly revenue and profit predictions because of high demand for its AI servers powered by Nvidia chips. The company now expects $20 billion in revenue from AI server shipments in fiscal 2026, up from $15 billion. Dell's AI servers are used by customers like Elon Musk's AI startup xAI and CoreWeave. The company raised its annual revenue forecast to be between $105 billion and $109 billion. A PC refresh is expected after Microsoft ends support for Windows 10 in October.

Analysts remain positive on Nvidia despite modest forecast

Analysts are still optimistic about Nvidia, raising price targets even though the company's forecast was not as high as some investors hoped. At least 10 firms increased their 12-month price targets, with the average rising by 3% to $202.60. JPMorgan Chase & Co. cited the upcoming Blackwell AI chips as a reason for their positive outlook. Nvidia projects sales of about $54 billion for the current period. Wall Street remains mostly positive on Nvidia's stock.

Analysts raise estimates for Nvidia after latest earnings report

Analysts are supporting Nvidia after the chipmaker's recent earnings results, with many increasing their price targets for the stock. Nvidia reported adjusted earnings of $1.05 per share on revenue of $46.74 billion, which beat expectations. However, data center revenue was lower than expected for the second quarter in a row. Despite this, analysts from JPMorgan, Citi, and Jefferies raised their price targets. Sentiment on Nvidia's stock is generally positive, with most analysts rating it as a buy.

Some Wall Street analysts are cautious about Nvidia's results

Some analysts are not completely happy with Nvidia's latest quarterly results. Nvidia reported adjusted earnings of $1.05 per share, beating estimates, and revenue also exceeded expectations. However, shares of Nvidia fell because its data center revenue was lower than expected for the second quarter. Despite this, most analysts remain positive on the stock. Seaport Research Partners, D.A. Davidson, Deutsche Bank, and HSBC are among the cautious analysts.

Analysts react to Nvidia's Q2 earnings report

Analysts have shared their opinions on Nvidia's second-quarter results, which were considered "underwhelming." Goldman Sachs maintained a Buy rating but expects the stock to decline slightly. Mizuho reiterated a Buy rating but lowered the price target, noting that Nvidia is still the leader in AI. Mizuho sees Nvidia's Q2 sales and Q3 guidance as generally in line with expectations, despite challenges in China. NVDA stock has a Strong Buy consensus rating based on several analyst ratings.

AI stocks fall after Nvidia's earnings report

AI stocks dropped after Nvidia's recent earnings report, which didn't meet high investor expectations. Nvidia's Q2 earnings surpassed estimates, but its Data Center revenue was slightly below expectations. The company's revenue forecast for the current quarter also signaled a possible slowdown in growth. Challenges in China have also affected Nvidia's business. Despite this, Nvidia is still considered a good stock to buy, with a Strong Buy consensus rating.

OpenAI's restructuring faces delays amid Microsoft negotiations

OpenAI's restructuring is being delayed due to ongoing negotiations with Microsoft. The two companies are discussing extending their partnership agreement, which is important for OpenAI's restructuring and potential IPO. However, they disagree on key issues like Microsoft's access to OpenAI's API and intellectual property. A failure to reach an agreement by December 31, 2024, could affect SoftBank's $10 billion investment in OpenAI. The companies are working to resolve these issues and continue their partnership.

OpenAI restructuring delayed by Microsoft negotiations

OpenAI's corporate restructuring may be delayed until next year because of negotiations with Microsoft. The two companies are in talks to extend their partnership agreement, which is important for OpenAI's restructuring and potential IPO. However, they disagree on issues like Microsoft's access to OpenAI's API and intellectual property. If they don't reach an agreement by December 31, SoftBank could withhold a $10 billion investment in OpenAI. The companies are working to resolve these issues.

UK invests in AI for public sector transformation

The UK government is investing £573 million in AI to modernize the public sector and cut costs. Microsoft, Palantir, and UiPath have secured major contracts to provide AI solutions. The government aims to reduce civil service costs by £45 billion annually through automation and AI. AI Growth Zones in Scotland and Wales will attract private investment and boost regional AI ecosystems. Investors can benefit from this expansion by investing in tech giants and UK-based innovators.

Top AI stocks to consider now

Three AI stocks to consider are SoundHound AI, Navitas Semiconductor, and Serve Robotics. SoundHound AI is a voice AI platform that is growing quickly. Navitas Semiconductor designs power semiconductors for data centers. Serve Robotics uses AI for last-mile delivery. These companies are high-risk but could offer high rewards as they target large markets with new technologies.

ASML could surpass Palantir in AI market value

ASML, a critical supplier in the semiconductor industry, could be worth more than Palantir by 2030. ASML makes machines used to create advanced chips, essential for AI. While Palantir's stock has grown significantly, its current valuation may be too high. ASML's revenue is expected to increase to 44 billion to 60 billion euros by 2030. Investing in ASML may be a better choice for AI investors due to its solid long-term prospects.

BILL's AI and product expansion drive revenue

BILL, a financial automation platform, reported strong Q2 results, exceeding revenue expectations with $383.3 million in sales. The company's non-GAAP profit was $0.53 per share, also beating estimates. BILL's success is attributed to new product launches and increased adoption of its platform. The company is investing in AI and rolling out new features like Supplier Payments Plus. BILL's outlook is cautious due to external uncertainties affecting small and midsized businesses.

AI boom creates billionaires faster than ever

The current boom in artificial intelligence is creating billionaires at a rapid pace. Nearly 500 private AI companies have reached valuations of $1 billion or more in the past two years. Companies like OpenAI, Anthropic, and Anysphere have quickly gained massive market value. This rapid wealth creation is due to AI's impact on how businesses operate and scale. Venture capital firms are investing heavily in AI, driving up valuations.

Crowdstrike acquires Onum to boost AI security

CrowdStrike is acquiring Onum, a data observability startup, for $290 million. The acquisition will help CrowdStrike enhance its AI-native security operations center. Onum's real-time pipeline detection capabilities were compelling to CrowdStrike. CrowdStrike aims to secure every AI agent, which it sees as superhuman entities with access to data and systems. The company has a history of successful acquisitions and is focused on customer experience and integration.

Sources

Dell Technologies AI servers Nvidia Revenue forecast xAI CoreWeave PC sales Windows 10 Analysts Nvidia earnings Data center revenue Price targets OpenAI Microsoft Partnership agreement Restructuring IPO UK government AI investment Public sector Microsoft contracts Palantir contracts UiPath contracts AI stocks SoundHound AI Navitas Semiconductor Serve Robotics ASML AI market value BILL Financial automation AI boom Billionaires Venture capital CrowdStrike Onum AI security Acquisition