Dell's AI Server Orders Surge to $60.9B

Key Takeaways

• <ul><li>Dell booked $60.9 billion in AI-server orders and $16.4 billion in AI-server revenue in Q2 fiscal 2027, with a $95 billion backlog</li><li>AEHR Test Systems shares surged 363% this year on AI chip testing demand, with fiscal 2027 revenue guidance of $130 to $150 million</li><li>Six tech giants including Alphabet, Amazon, Microsoft, Meta, Oracle, and SpaceX are expected to spend over $1.3 trillion on capital projects by 2027</li><li>Microsoft Cloud reached $214 billion in annual revenue, up 27 percent, with over 30 million Microsoft 365 Copilot seats and 50 million GitHub Copilot users</li><li>US corporate spending on data centers and information processing hardware reached $752 billion in Q2, surpassing residential housing investment of $748 billion for the first time</li><li>Nebius reported Q2 revenue of $582 million, up 454% year over year, and raised its 2026 capital spending guidance to $20 to $25 billion</li><li>Super Micro Computer's fiscal 2026 revenue nearly doubled to $39.1 billion with over $60 billion in new orders</li><li>Microsoft Azure revenue grew 43 percent year over year, matching Alibaba Cloud's external revenue growth of 45 percent</li><li>The UK and US announced a new AI defence partnership ahead of the G20 summit in Manchester</li><li>Thomson Reuters launched a self-assessment tool to help tax teams evaluate AI governance across five stages and eight dimensions</li></ul>

AEHR Test Systems sees huge stock gains on AI demand

AEHR Test Systems has become a semiconductor winner in 2026 due to AI-related testing demand. The stock trades at 18.59X sales, much higher than its three-year average of 6.05X. Shares surged 363% this year, far outpacing industry growth. The company ended May 2026 with $116.4 million in cash and expects fiscal 2027 revenue between $130 and $150 million. AI testing for chips, silicon photonics, and memory are key growth areas.

Dell rides AI server demand while facing rivals

Dell Technologies is gaining momentum with sovereign and Neocloud customers buying AI servers. The company booked a record $60.9 billion in AI-server orders and earned $16.4 billion in AI-server revenue in Q2 fiscal 2027, ending with a $95 billion backlog. Dell expects fiscal 2027 AI-server revenue of $74 billion. Rivals Super Micro Computer and Cisco are also expanding their AI customer bases. Dell stock has risen 351.2% year to date.

Dell, Super Micro and HPE form top AI-server portfolio

Dell Technologies, Super Micro Computer, and Hewlett Packard Enterprise are top AI infrastructure stocks. Dell reported Q2 fiscal 2027 revenue growth of 53% and EPS growth of 203%, with AI-optimized server revenue reaching $16.4 billion. Super Micro Computer's fiscal 2026 revenue nearly doubled to $39.1 billion with over $60 billion in new orders. HPE is also benefiting from strong demand for high-performance rack servers and liquid cooling systems in AI data centers.

Nebius and CoreWeave compared as AI cloud stocks

Nebius and CoreWeave are both growing fast in the AI cloud market. Nebius reported Q2 revenue of $582 million, up 454% year over year, with AI revenue reaching $575 million. The company closed four deals averaging over $1 billion each and raised its year-end power target to 5 gigawatts. Nebius increased its 2026 capital spending guidance to $20 to $25 billion. CoreWeave is also expanding its purpose-built AI cloud platform and capacity.

Dell stock forecast driven by $95 billion AI backlog

Dell reported $60.9 billion in AI-server orders and $16.4 billion in AI-server revenue in Q2 fiscal 2027, ending with a $95 billion backlog. The company raised full-year FY2027 revenue guidance to $192 billion and non-GAAP EPS guidance to $25.50. Dell expects $49 billion in revenue and $6.50 in non-GAAP EPS for the current quarter. The company returned $4.3 billion to shareholders and declared a $0.63 per share dividend. Dell stock closed at $568.06.

Microsoft and Alibaba Cloud AI stocks compared

Microsoft and Alibaba are both seeing strong cloud and AI growth. Azure revenue grew 43 percent year over year, while Alibaba Cloud external revenue grew 45 percent. Microsoft has over 30 million Microsoft 365 Copilot seats and 50 million GitHub Copilot users. Alibaba aims to reach $100 billion in external cloud revenue by 2030. Both companies are investing heavily in AI infrastructure and custom chips.

Microsoft and Alibaba Cloud AI stocks compared

Microsoft and Alibaba are compared as AI-focused cloud companies. Microsoft Cloud reached $214 billion in annual revenue, up 27 percent. Azure is expected to grow about 45 percent in constant currency for fiscal 2027. Alibaba Cloud's EBITDA margin improved to between 11.6 and 12 percent. Alibaba's Qwen3.8-Max model has 2.4 trillion parameters. Both companies face high capital spending from AI data center expansion.

US corporate AI investment surpasses housing spending

US corporate spending on data centers and information processing hardware reached $752 billion in the second quarter. This surpassed residential housing investment of $748 billion for the first time. Six tech giants, including Alphabet, Amazon, Microsoft, Meta, Oracle, and SpaceX, are expected to spend over $1.3 trillion on capital projects by 2027. S&P Global sees 2028 as a key turning point. Housing starts continue to fall as mortgage rates stay high.

AI investment boom shifts US spending from homes to data centers

Adam Shapiro from the Federal Reserve Bank of San Francisco says US investment is moving from homes to computers. Inflation-adjusted spending on information-processing equipment reached $752 billion, above residential investment at $748 billion. He says AI investment is less sensitive to interest rates than housing. Hyperscaler capital spending is expected to approach $1.2 trillion in the next year. S&P Global expects 2028 as an inflection point for revenue and spending.

Intelligent Alpha's Doug Clinton discusses AI demand

Doug Clinton, founder and CEO of Intelligent Alpha, discussed the AI trade on Squawk Box. He said demand for AI remains very strong. The interview covered the future of AI regulation and current market trends. The discussion took place on September 21, 2026. Intelligent Alpha focuses on AI-related investment opportunities.

New Model Tackles Bias in Student AI Diagnosis Tools

Researchers created a new framework called ability-residual decoupled modeling to improve affective cognitive diagnosis. This approach separates stable cognitive errors from emotional factors like fatigue or engagement. Tests on ASSIST2017, ASSIST2012, ASSIST2009, and Junyi datasets showed better prediction accuracy. The method reduces contamination from cognitive bias in emotional analysis.

IGV ETF Targets Software Stocks as Next AI Winners

An article highlights the iShares Expanded Tech-Software Sector ETF (IGV) as a strong investment opportunity. Software stocks have started outperforming semiconductors after lagging during the AI boom. The fund holds major positions in PLTR, PANW, and MSFT. Analysts believe a potential slowdown in AI development could further boost software shares.

Thomson Reuters Launches AI Compliance Maturity Assessment

Thomson Reuters introduced a self-assessment tool to help tax teams evaluate their AI governance. The assessment benchmarks organizations across five stages from experimenting to production-ready. It covers eight dimensions including validation, traceability, and budget. The tool provides practical next steps to strengthen AI compliance in indirect tax workflows.

UK and US Announce New AI Defence Partnership

UK Prime Minister Andy Burnham will announce a new AI defence partnership with the United States. The collaboration involves Britains Defence Rapid AI Delivery Taskforce and the US Department of War Chief Digital and Artificial Intelligence Office. The goal is to protect critical infrastructure and detect security threats. Burnham announced the plan ahead of the G20 summit in Manchester.

US Lawmakers Push for New AI Regulations

Lawmakers in Washington, D.C. are actively pushing for new artificial intelligence regulations. The Trump White House responded by stating that some actions will be taken. The push comes as concerns about AI safety and governance continue to grow across the country.

Backup strategies now serve as foundation for trusted AI systems

Data protection has evolved through four stages over the past two decades. It began with simple backup for preventing data loss, then added fast recovery capabilities. Next came cyber resilience to handle ransomware and active adversaries. Now organizations need a trusted data layer that verifies data authenticity and integrity before AI systems use it. Capabilities like immutability and air-gapped copies originally built for recovery are now equally important for the AI era.

Slower AI development could require more nuanced investment approaches

AGF investments portfolio manager Mike Archibald discusses a proposed slowdown in artificial intelligence development. He believes that a slower pace of AI progress will likely require investors to adopt more nuanced strategies. The article examines how this potential shift could affect North American equity markets. Investors may need to reconsider their approaches to AI-related holdings.

Sources

• AEHR at 18.59X Sales: Market Loves Its AI Story, But is Love Blind?
• DELL Rides on Growing AI Clientele: Can the Stock Outpace SMCI & CSCO?
• Buy Top-Ranked DELL, SMCI & HPE to Form a Powerful AI-Server Portfolio
• Nebius vs. CoreWeave: Which AI Cloud Stock Is the Better Buy?
• Dell Stock Forecast: $95B AI Backlog Meets Rising Channel Support at $559
• Microsoft vs Alibaba: Which Cloud AI Stock Is Better Positioned?
• Microsoft vs Alibaba: Which Cloud AI Stock Is Better Positioned?
• US Corporate AI Investment Surpasses Housing for First Time as Data Center Spending Reshapes Economic Structure
• AI Investment Boom Is 'Massive' — Top Economist Says US Spending Is Moving Away From Homes and Toward Data…
• Intelligent Alpha's Doug Clinton on the AI trade: We continue to see huge demand
• Ability-Residual Decoupled Modeling for Affective Cognitive Diagnosis
• Nvidia Has Been the King of AI. This ETF Bets the Next Winners Will Be Somewhere Else.
• AI compliance maturity assessment
• UK's Burnham to Announce New AI Defence Partnership With US
• Lawmakers push for artificial intelligence regulations
• From passive to active: Why backup is becoming a foundation for trusted AI
• Contemplating the Impact of a Proposed AI Slowdown on North American Equity Markets