DELL, HPE Stocks Draw Focus Ahead Of Earnings This Week — And SMCI Bulls Are Watching Closely
Dell’s record AI-server backlog and HPE’s push into AI infrastructure have raised expectations for another strong quarter.
Strong AI demand commentary from both companies could bolster the case for a rerating of SMCI, traders said.
DELL stock is up 266% year to date, while HPE has gained 120%.
The AI server trade faces another big test this week as Dell Technologies and Hewlett Packard Enterprise report quarterly results, offering investors a fresh read on the AI infrastructure market — and potentially giving Super Micro Computer’s battered stock another catalyst.
Dell is set to report its fiscal second-quarter results Tuesday, with Wall Street expecting revenue to increase nearly 50% to $44.48 billion and adjusted earnings to more than double to $4.93 a share.
See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox
Dell reported a record $51.3 billion AI-server backlog in the first quarter, with AI-optimized server revenue soaring 757% to $16.1 billion. Demand has continued to exceed supply, with memory shortages emerging as a key constraint, and the setup – now showing increasingly in the earnings – has powered a 266% rally in DELL stock this year.
Dell’s commentary on AI orders, backlog, margins and customer demand will be closely watched. UBS initiated coverage on the stock earlier this week with a ‘Hold’ rating and a $480 price target, citing “very strong” demand tailwinds and execution at scale with a speed advantage. In a separate note, Bank of America analysts said they expect Dell to raise its FY27 forecasts.
HPE reports fiscal third-quarter earnings Wednesday, with analysts expecting its revenue to surge 30% to $11.96 billion and adjusted EPS to more than double to $0.93, per Koyfin. HPE has also been expanding its AI infrastructure footprint, most recently unveiling next-generation “Saudi Made” servers as it pushes further into sovereign AI and local data-center deployments. HPE stock has gained 120% year to date.
Traders Watching SMCI For Potential Upside
The setup is particularly interesting for SMCI, a competitor. Last month, the company forecast fiscal 2027 revenue well above Wall Street expectations, while Q4 gross margins came in stronger than expected at 17.5%.
Yet the stock remains deeply discounted, trading well below its 52-week high, with lingering concerns around governance and credibility. Investor sentiment took another hit earlier this year after U.S. authorities indicted one of the company’s co-founders and several employees over alleged illegal server exports to China.