Oracle management said during its earnings call that fiscal 2027 capital expenditure of $90 billion to $95 billion will be focused on expanding AI data centers, and specifically named suppliers including Dell and HPE. The comments lifted Dell Technologies shares 11.98% on Friday, sending the stock to an all-time high and pushing its market capitalization above $360 billion. The company is now up nearly 350% for the year.
Oracle had previously said fiscal 2027 capex would rise sharply, with spending aimed mainly at AI server racks, liquid cooling and networking equipment. At the same time, continued growth in Oracle’s AI cloud orders has improved visibility into Dell’s future AI server demand. RBC Capital also initiated coverage on Dell with an Outperform rating, arguing the company stands to benefit from a multiyear AI infrastructure investment cycle and that its supply chain capabilities form a competitive barrier.
Dell said it now has more than 6,500 AI server customers. Its second-quarter AI server revenue reached $16.4 billion, up 100% year over year, while AI server backlog stood at $95 billion at the end of the quarter.
Oracle management said on its earnings call that fiscal 2027 capital expenditure of $90 billion to $95 billion will be directed primarily toward AI data center expansion, and it named suppliers including Dell and HPE.
Dell Technologies shares rose 11.98% on Friday on the news, hitting a record high. Its market capitalization moved above $360 billion, and the stock is up nearly 350% so far this year.
Oracle spending plan centers on AI infrastructure
Oracle had previously disclosed that fiscal 2027 capital spending would increase sharply, with most of the outlay going to purchases of AI server racks, liquid cooling systems and networking equipment. The company’s AI cloud orders have also kept growing, improving visibility into Dell’s future AI server orders.
Wall Street backing and Dell operating metrics
RBC Capital initiated coverage on Dell with an Outperform rating. The firm said Dell is positioned to keep benefiting from a multiyear AI infrastructure investment cycle, and added that the company’s supply chain capabilities represent a competitive barrier.
Dell currently has more than 6,500 AI server customers. In the second quarter, its AI server revenue reached $16.4 billion, up 100% from a year earlier. At quarter-end, AI server backlog totaled $95 billion.
As cloud providers including Oracle continue to increase AI infrastructure spending, Dell is emerging as a key beneficiary of the current expansion in AI capital expenditure.
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