Dell and Nvidia are pushing back against the idea that the AI boom is slowing down. Their latest results and, more importantly, their long-term revenue forecasts show that companies are still spending heavily on AI infrastructure. Both tech companies have recently delivered numbers that challenge the bearish view that AI demand may be close to its peak.
Dell gave investors a major surprise with its future revenue outlook. Dell’s stock jumped nearly 10% in premarket trading on Wednesday after the company gave its fiscal 2027 revenue guidance. The guidance was about $25 billion higher than Wall Street analysts had expected, according to Yahoo Finance.
Dell AI demand stays strong
The size of Dell’s forecast shows just how big the AI infrastructure business has become. For comparison, Macy’s is estimated to generate about $22 billion in sales during all of 2026, meaning the amount by which Dell exceeded analyst expectations for its fiscal 2027 revenue guidance is itself larger than Macy’s expected yearly sales, Yahoo Finance noted.
Dell’s strong outlook is partly being helped by limited supply. Citi analyst Asiya Merchant said Dell’s guidance already takes supply constraints into account, meaning there could be room for the company to perform even better if supply improves.
Merchant also expects Dell’s momentum to continue. She said demand should remain strong as companies upgrade their technology infrastructure and more businesses adopt AI. Dell’s wide range of products, engineering and deployment expertise, financing options and large supply chain are helping it win more business, according to Citi analyst Asiya Merchant, as quoted by Yahoo Finance.
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Dell sales hit record high
Dell’s latest quarter also showed how strong the demand already is. The company reported $47 billion in sales for its fiscal second quarter, a record for Dell. Revenue jumped 58% from the same period a year earlier, according to Yahoo Finance.
Dell’s profits grew even faster. Its earnings per share, or EPS, increased 273% year over year, showing that the company is not only selling more but is also seeing a huge jump in earnings.
AI servers drive Dell growth
AI servers were the biggest reason behind Dell’s strong performance. Demand for servers designed to run AI workloads remained extremely strong. Large companies and cloud providers are continuing to expand their data centers to support growing AI use.
Dell founder Michael Dell also highlighted the huge jump in earnings. In a post on X, he joked about an old Texas saying and pointed to the fact that if a company keeps growing its EPS by more than 200% year over year, something good is likely to happen, Michael Dell said in an X post.
Nvidia sees strong AI growth
Nvidia delivered another major signal that the AI spending boom is not over. Nvidia gave investors an unusually long-term revenue forecast after reporting its fiscal second-quarter results. The company said it expects 70% revenue growth in fiscal 2028, according to Yahoo Finance.
That forecast was far above Wall Street expectations. Analysts had expected Nvidia’s fiscal 2028 revenue growth to be around 45%, meaning Nvidia’s own forecast was dramatically more bullish than the market’s estimate.
Nvidia CEO Jensen Huang said the company could potentially grow even faster. Memory chip shortages are limiting how much Nvidia can sell, meaning the company’s revenue growth could be higher if it had more memory components available.
Nvidia beats Wall Street estimates
Nvidia’s latest quarter was already much stronger than expected. The company reported adjusted earnings of $2.22 per share and revenue of $96.2 billion for its fiscal second quarter.
Wall Street had expected lower numbers. Analysts were looking for adjusted earnings of about $2.09 per share and revenue of around $92.3 billion, meaning Nvidia beat expectations on both earnings and revenue, according to Yahoo Finance.
Nvidia’s Data Center business was especially strong. Data Center revenue, which includes business from hyperscalers, AI cloud companies, industrial customers and enterprises, reached $89 billion.
That was also above analyst expectations. Wall Street had expected Nvidia’s Data Center revenue to come in at about $85.8 billion, according to Yahoo Finance. Nvidia’s other businesses also performed better than expected. Its Edge Computing business, which includes areas such as physical AI and gaming, generated $7.2 billion in revenue. Analysts had expected about $6.6 billion.
Nvidia revenue could cross $100 billion
Nvidia is also expecting another record quarter ahead. The company forecast fiscal third-quarter revenue between $105.8 billion and $110.1 billion. Wall Street’s estimate was about $105.1 billion.
That could push Nvidia into a new revenue milestone. Analysts expect the company to report its first-ever quarter with more than $100 billion in revenue, based on the company’s guidance.
Citi said Nvidia’s results showed that AI growth remains exceptionally strong. Citi analyst Laura Chen wrote that Nvidia’s earnings call reinforced the strength of AI growth, according to Yahoo Finance.
Together, Dell and Nvidia are giving investors a strong reason to question the “AI boom is peaking” argument. Dell is seeing huge demand for AI servers from businesses and cloud companies, while Nvidia is forecasting very strong growth years into the future.
AI boom may not be peaking
The key point is that the strongest signal is not just the current earnings. Both companies are giving extremely strong future guidance, suggesting that AI-related spending is expected to remain high rather than suddenly disappear.
There are still supply problems, especially around memory chips, but that is different from weak demand. In fact, Nvidia’s comments suggest that shortages are limiting how much the company can supply rather than customers losing interest in AI, according to Yahoo Finance.
For now, the numbers suggest the AI boom still has plenty of momentum. Dell’s record sales and massive future guidance, combined with Nvidia’s better-than-expected results and 70% fiscal 2028 growth forecast, make the argument that AI demand is already peaking harder to support.
So, is the AI boom peaking? Based on Dell and Nvidia’s latest numbers, not yet. The companies are still seeing strong demand, expanding AI infrastructure and major customer spending — although investors will continue watching whether this growth can remain this strong in the coming years.
