[Earning Recap] Trump’s Dell Bet Gets Another Boost as AI Server Backlog Hits $95 Billion
Dell surged after raising its full-year outlook on booming AI server demand, while Palo Alto Networks gained on strong security growth. MongoDB, meanwhile, beat estimates and raised guidance but still sold off sharply as investors looked for faster growth from its Atlas cloud business.
$Dell Technologies Inc.(DELL)$ +10% after hours
Dell sells PCs, storage systems and servers used by enterprises and cloud providers.
Fiscal second-quarter revenue jumped 58% to a record $47 billion, topping Wall Street’s estimate of about $44.9 billion. Adjusted earnings came in at $7.04 per share, well above the $4.91 expected. AI server revenue doubled to $16.4 billion, while new AI orders reached $60.9 billion. Dell ended the quarter with a record $95 billion AI server backlog.
The company raised its full-year revenue forecast to $192 billion, up from $167 billion, and lifted its AI server sales outlook to $74 billion from $60 billion. Shares rose about 10% in extended trading as investors focused on the size of the backlog and the stronger full-year outlook.
$Palo Alto Networks(PANW)$ +5% after hours
Palo Alto Networks sells cybersecurity software for corporate networks, cloud systems and AI applications.
Fiscal fourth-quarter revenue rose 34% to $3.41 billion, ahead of expectations of roughly $3.35 billion. Adjusted earnings of $1.02 per share also topped the $0.98 consensus. Next-generation security ARR jumped 63% to $9.1 billion, while remaining performance obligations rose 34% to $21.2 billion.
For fiscal 2027, Palo Alto expects revenue of $14.1 billion to $14.2 billion and adjusted EPS of $4.16 to $4.19. Shares gained about 5% after hours, helped by strong recurring revenue growth and continued demand for cloud and AI security products.
$MongoDB Inc.(MDB)$ -12% after hours
MongoDB makes database software, including the cloud-based Atlas platform used by developers and enterprises.
Second-quarter revenue rose 30% to $771.8 million, above the roughly $735 million consensus. Adjusted EPS came in at $1.90, topping the $1.62 estimate. MongoDB also raised its full-year outlook, forecasting revenue of $2.99 billion to $3.03 billion and adjusted EPS of $6.39 to $6.58.
Atlas revenue grew 29%, roughly in line with the previous two quarters. After a strong run in the stock ahead of earnings, investors appeared to be looking for a clearer acceleration in cloud growth.
Today’s discussion:
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Trump has a stake in Dell. After a 10% post-earnings jump, would you follow the trade or stay away?
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The AI infrastructure demand is definitely encouraging, and Dell is becoming an important beneficiary of the ongoing data-center buildout. However, I’d also keep an eye on margins, execution and how much of that backlog ultimately converts into sustainable free cash flow. A huge backlog is great, but valuation matters too.
So personally, I’d hold my existing exposure but not chase the spike. If Dell pulls back after the initial excitement, I’d be more comfortable considering an entry. For me, strong fundamentals are a reason to watch closely—not necessarily a reason to buy at any price. 📈
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What makes Dell interesting is that this isn’t just an “AI story”—traditional servers, networking and storage are accelerating too. The key risk is valuation after a huge run, plus margins and cash flow as Dell scales capacity.
As for Trump’s reported Dell stake, I wouldn’t make that the investment thesis. The backlog is the thesis.
My play: hold/buy on pullbacks, not chase the first green candle. Dell looks like one of the cleaner ways to ride the AI infrastructure boom.
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