Why Nvidia Shares Rose Over 4% After Dell Results

Nvidia shares climbed more than 4% on Wednesday after Dell Technologies posted stronger-than-expected quarterly results and disclosed large AI server orders.

Dell reported $60.9 billion in AI server orders for the quarter and an AI-related backlog of $95 billion, up from $51.3 billion in the prior report. The company raised its fiscal 2027 revenue forecast to $192 billion from $167 billion and lifted adjusted EPS guidance to $25.50 from $17.90.

Dell’s Infrastructure Solutions Group, which includes data-center hardware, generated $31.78 billion in quarterly revenue, an 89% increase from a year earlier. Revenue from AI-optimized servers was $16.40 billion, roughly double the level a year earlier.

Orders came from a mix of cloud providers and other large customers, including AI cloud specialists Nscale and CoreWeave. Dell has expanded systems built around Nvidia chips, offering servers powered by Blackwell Ultra and committing to support Nvidia’s Vera central processing units and the Vera Rubin platform.

J.P. Morgan analysts wrote that ‘The AI momentum spoke for itself,’ citing the record orders and backlog. Morgan Stanley analysts noted Dell raised its fiscal 2027 forecast for AI-optimized server revenue to $74 billion from $60 billion.

Nvidia reported strong recent results and projected about 70% revenue growth for fiscal 2028. The company described its business as constrained by supply rather than demand and reported revenue growth of 83% over the past 12 months.

Several analysts adjusted estimates after Nvidia’s results; JPMorgan raised its price target on Nvidia to $320 from $280 and maintained an Overweight rating.

Nvidia is expanding its ecosystem through a strategic partnership with MediaTek. Nvidia plans to invest $3.5 billion in MediaTek convertible bonds, and MediaTek will adopt Nvidia’s NVLink Fusion platform. Supply-chain analyst Ming-Chi Kuo noted the arrangement allows MediaTek to build customized chips that can connect to Nvidia’s rack-scale AI systems.

Nvidia reported a shift in workload composition: about 18 months ago training and inference were roughly even, and the company now considers inference the larger part of its business. Toshiya Hari, Nvidia’s vice president of investor relations and strategic finance, stated the 70% growth framework reflects broad-based demand and indicated supply limits could constrain growth.

Markets were broadly higher on the day, with the S&P 500 up about 0.7%, the Dow Jones Industrial Average gaining roughly 0.9% and the Nasdaq Composite advancing about 0.5%.