Dell Earnings: Insight into Red-Hot AI Infrastructure Market
Dell Technologies (DELL) stock is setting all-time highs near $314 as traders await post-market quarterly earnings from the personal computer and hardware maker.
The Street is looking for Dell to earn $3.04 per share vs. $1.55 one year ago (+96.1%) and for revenue of $35.46B compared to last year’s figure of $23.38B (+51.7%).
While the artificial intelligence boom has simultaneously caused so many opportunities and disruptions for the tech sector, among S&P 500 companies, Dell stock boasts the 7th best gains of the year, up about +143%. This surge is in part due to the unquenchable demand for AI hardware and infrastructure; Dell produces servers, networking equipment, and storage systems including a turnkey package called Dell AI Factory with Nvidia (NVDA). Dell’s A.I. server backlog ballooned to $43B as of mid-May, according to news reports, with news breaking Wednesday that the cloud provider and data center operator Iren (IREN) agreed to purchase $1.6B of Dell equipment.
However, the flip side is Dell’s personal computer business, which is squeezed as AI companies gobble up memory and drive up prices for DRAM (short-term like RAM sticks and flash drives) and HDD (long-term like internal hard disks) products. After Dell’s major price hike of 10% to 30% for various commercial products in December, the supply/demand crunch has only worsened, so this is another area likely to be of interest to investors.
Dell’s last earnings release in February showed revenue of $113.5B in fiscal 2026 and highlights this disparity between the two major branches of the company. The Infrastructure Solutions Group, which includes the rapidly growing server and networking business, showed revenue of $60.8B for a 40% gain. Meanwhile, the Client Solutions Group, which represents computers and tablets, showed full-year revenue of $51B for only a 5% increase.
Dell’s recent price activity formed an upward trendline beginning with lows in mid-March and connecting several more troughs since then, with another ferocious upside push late last week making for a nearly +21% gain since the May 21 close. Momentum remains strong heading into earnings, with the Relative Strength Index (RSI) above 78 – which is not typical as momentum often slows with known event risk situations such as earnings on the horizon. The three-month Volume Profile chart shows a small volume node between about 300 to 310 near the highs, which could present a supportive foothold. Meanwhile, a much larger node sits between 235 to 250 with an accompanying volume spike (volume at least 50% above the 50-day simple moving average of volume) on the May 22 gap, which can signify high trader conviction.
Thursday morning’s expected move information shows the potential for a range of +/-29 (9.1%) by tomorrow’s May 29 expiration. The June 18 monthly expiration is particularly interesting because it shows a potential range of +/-51.6 (16.2%), with the lower boundary of about 266 aligning with the previously mentioned May 22 gap that saw a low of 265.21 and matches up with an old high from May 8. This presents a notable potentially supportive area for traders to consider going forward.
This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.
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