Dell Shocks Wall Street, Doubles Growth Forecast In “Backbone of AI” Pivot…

How do you do fellow kids? - Michael Dell getting invited to the cool kids table

The company that once sold beige desktops to my boomer dad now sells compute hardons to Elon Musk. And the Street’s eating it up as Dell stock popped 6% after company nearly doubled its long-term growth forecast.

(Source: Giphy) 

In short, annual revenue expectations jumped from 3–4% to 7–9%, while profit growth was boosted from 8% to 15%. Translation: Dell finally realized there’s more money in powering AI models than in trying to convince consumers to buy another Inspiron. As we all know, the world’s losing it’s collective mind over AI infrastructure, and Dell’s standing at the edge of the liquidity geyser with a bucket. The company expects to ship a metric f*k ton $20 billion worth of AI servers in 2026, double last year’s figure, all while leeching off Nvidia’s supply chain. 

(Source: CNBC) 

Naturally, Michael Dell calls it “deploying intelligence at scale.” What he really means is: we buy Nvidia chips, bolt them into metal boxes, and sell them to people building God. Those people include xAI, CoreWeave, and half of Silicon Valley’s GPU squatters. And yet, the market loves a good pivot. Dell’s once-boring infrastructure division… the part that gave used to sell storage and networking gear, is now expected to grow up to 14% annually. Meanwhile, the PC unit (a.k.a. The thing that gave the “Dude your getting a Dell” guy his 15 minutes of fame) is crawling along at 2-3% growth.

Meaning, AI’s now the heartbeat, and the rest of the company is just background noise. For two decades, Dell’s been big tech’s fax machine: reliable, outdated, and impossible to kill. Then generative AI hit, and suddenly the same guys who couldn’t sell you a laptop are selling the backbone of the machine that replaces you. Hell of a comeback, I must say. And Dell is about to milk it for all it’s worth. 

(Source: Giphy) 

So yeah… that’s the story with the narrative being a compute gold rush where the middlemen get rich while the dreamers burn capital. Nvidia mints the chips, Dell ships the boxes, and everyone downstream convinces themselves they’re changing the world. Now does that mean Michael Dell actually believes in the AI singularity? Who knows… but he doesn’t have to. He just needs to invoice it while the iron is hot. Until next time, friends… 

At the time of publishing, Stocks.News holds positions in Dell as mentioned in the article.