Key points:

• Dell shares rise on forecast
• Q3 revenue misses the mark
• Sales guidance is well above views

Third-quarter results missed the consensus views. But that didn’t stop investors from betting on the stock.

🚀 Dell Pops Despite Mixed Q3

• Dell DELL missed revenue expectations but still impressed investors with solid adjusted earnings of $2.59 per share, above forecasts, and a clearer path to stronger AI-driven growth heading into year-end.
• Shares jumped 6% Wednesday as traders shrugged off the minor revenue miss, betting instead on Dell’s bullish guidance and its growing importance in the AI server supply chain, especially for systems built around Nvidia chips.
• Quarterly revenue rose 11% year over year, showing that despite PC headwinds, Dell’s infrastructure business is carrying real weight. Investors love a comeback story with numbers to match.

🤖 AI Servers Steal the Spotlight

• Dell lifted its full-year AI server shipment forecast to $25 billion from $20 billion, putting the company squarely in the “AI infrastructure winners” column. That’s serious scale for a segment that barely existed five years ago.
• The company now expects to sell $9.4 billion worth of AI servers in Q4 alone – an eye-popping figure that helped override concerns about its softer Q3 top line.
• As one of Nvidia’s largest hardware partners, Dell’s results are often treated as a barometer for the broader AI build-out. If Dell is selling more, then the AI boom is far from cooling.

📅 Big Q4 Guidance

• Dell forecast fourth-quarter revenue of $31.5 billion – well above the Street’s $27.6 billion expectation – putting the company on track for a powerful finish to the fiscal year.
• Expected Q4 EPS landed at $3.50 versus the $3.21 consensus, giving investors confidence that margin expansion from AI hardware is kicking in faster than many anticipated.
• Full-year revenue guidance was raised to $111.7 billion, reinforcing Dell’s narrative: it may have missed consensus this quarter, but the real story is what happens next. And Wall Street clearly likes the script.

Source: Tradingview