Nvidia reports $120 billion profit as Salesforce declines

Key Takeaways

• Dell Technologies' AI server business generated $800 million in orders in Q4 and is projected to reach $50 billion in sales by fiscal year 2027.
• Dell plans a 20% dividend increase and a $10 billion stock buyback program, signaling strong confidence in its AI growth trajectory.
• Nvidia reported $120 billion in profit last year, but its stock declined over 5%, reflecting investor concerns about the sustainability of high AI market valuations.
• Shares of software companies, including Salesforce, experienced declines, indicating pressure on traditional business models from AI disruption.
• Investor Howard Marks changed his skeptical view on AI after using Anthropic's Claude model, recognizing its revolutionary technological benefits.
• Anthropic's AI tools are perceived as potentially disruptive to traditional software business models, contributing to market volatility.
• Strong brand loyalty, exemplified by Apple, may help protect leading consumer brands from the disruptive impacts of AI.
• SoundHound AI reported record Q4 revenue growth of 83% and a 130% surge in bookings for its Speech-to-Action platform.
• PSON anticipates continued AI-driven growth in 2026, with increased sales and adjusted operating profit.
• Dell's record backlog of $43 billion and effective management of component costs position it strongly in the AI infrastructure market.

Dell stock soars on strong AI server demand and sales forecast

Dell Technologies' stock price jumped significantly after the company released a strong sales forecast. This positive outlook is driven by high demand for their artificial intelligence servers. Dell expects a large increase in revenue from these AI servers in the second half of the fiscal year. The company's performance reflects a larger trend of tech companies investing heavily in AI infrastructure. Dell's updated forecasts exceeded expectations, showing confidence in continued AI demand.

Dell's Q4 revenue jumps 39% fueled by AI server boom

Dell Technologies reported a 39% increase in revenue for its latest quarter, driven by a surge in demand for artificial intelligence servers. The company expects revenue to grow between 1% and 3% this fiscal year. Dell's AI server business, launched last year, generated $800 million in orders in the fourth quarter and is projected to bring in $2 billion for the full fiscal year. Overall revenue rose to $24.9 billion, with strong sales in both servers and PCs. Dell's stock has climbed over 40% this year due to optimism about its AI market prospects.

Dell projects $50 billion in AI server sales, stock jumps

Dell Technologies' stock surged after forecasting that AI server sales could reach $50 billion in the current fiscal year, ending January 2027. The company reported a record backlog of $43 billion, indicating strong demand for its AI solutions. Dell's fiscal fourth-quarter revenue beat analyst estimates at $22.3 billion, with net income rising 21%. These AI servers are designed for demanding AI workloads like training large language models. Dell's success in the AI server market highlights its engineering leadership and ability to deliver specialized solutions.

Dell stock climbs as AI server sales projected to double by 2027

Dell Technologies' stock rose significantly after the company predicted its artificial intelligence server revenue will double to $50 billion by fiscal year 2027. Dell also announced plans to increase dividends by 20% and initiate a $10 billion stock buyback program. The company's AI server revenue is expected to grow by 103%. Analysts from J.P. Morgan raised their price targets, citing Dell's strong position in AI computing for cloud providers and enterprises. Despite rising memory chip costs impacting the PC market, Dell has managed these pressures effectively.

Dell forecasts AI server sales doubling by 2027, boosts shareholder returns

Dell Technologies forecasts its AI server sales will double by 2027, reaching $50 billion. This projection was accompanied by a 20% dividend increase and a $10 billion stock buyback plan. The company's outlook comes as businesses invest heavily in AI infrastructure, with Dell gaining traction among enterprises and smaller cloud providers. While the AI buildout increases component costs for PCs, Dell has reportedly managed these supply chain challenges better than competitors like HP and Lenovo. This strategic focus on AI positions Dell for continued growth.

Luxury brands like Apple could benefit from AI's rise

Strong brand loyalty, similar to that of luxury Swiss watchmakers, could help protect leading consumer brands like Apple from the impact of artificial intelligence. This emotional connection consumers have with these brands may serve as a shield against the changes AI brings. The strategy suggests that focusing on emotional attachment in product design can foster resilience in the face of technological disruption.

Howard Marks changes view on AI after Claude tutorial

Investor Howard Marks has shifted his perspective on artificial intelligence after using Anthropic's Claude AI model. Previously skeptical, Marks now acknowledges AI's revolutionary technological benefits and believes its potential may be underestimated. However, he cautions that this does not necessarily mean current investment prices are justified. Marks advises investors against being completely 'all-in' or 'all-out' on AI, suggesting a more balanced approach.

SoundHound AI reports record Q4 with 83% revenue growth

SoundHound AI announced record fourth-quarter and full-year 2025 results, showing significant revenue growth and improved profitability. Fourth-quarter revenue increased by 83% year-over-year to $18.5 million, while full-year revenue grew 54% to $62.7 million. The company's gross profit rose 100% in Q4, and its adjusted EBITDA loss narrowed considerably. Bookings for its Speech-to-Action platform surged 130%, and enterprise customers increased by 150%. SoundHound AI expects continued revenue growth and profitability improvements in 2026.

AI disrupts markets: Hardware vs. Software and Anthropic's role

Artificial intelligence is reshaping the economy, causing volatility in software stocks due to fears that AI tools from companies like Anthropic could disrupt traditional business models. Lou Basenese discussed AI's market impact, the standoff between Anthropic and the Pentagon, and economic data on mortgage rates and inflation. The rise of AI is creating a dynamic between hardware and software companies, with significant investor anxiety about its long-term effects.

Nvidia's massive profit worries investors amid AI market scrutiny

Nvidia reported an enormous $120 billion profit last year, including $43 billion in its latest quarter, yet its stock fell over 5%. This decline reflects broader investor concerns about the AI market, known as the 'AI scare trade.' While Nvidia's CEO Jensen Huang highlighted strong compute demand driven by agentic AI, the market is questioning if AI can sustain the high investments and soaring stock prices. Software companies are also facing pressure, with shares of ServiceNow, Synopsys, and Salesforce declining significantly.

AI trading signals for Atrium Mortgage Investment Corporation

Trading plans for Atrium Mortgage Investment Corporation (AI:CA) suggest buying near 11.84 with a target of 12.17 and a stop loss at 11.78 for long-term investors. Alternatively, shorting near 12.17 with a target of 11.84 and a stop loss at 12.23 is also indicated. AI generated ratings for February 26 show a 'Neutral' rating for near and mid-term investments, but a 'Strong' rating for the long term. These signals are based on AI analysis of market data for the company.

PSON reports sales growth and AI-driven strategy for 2026

PSON announced that its sales and profit increased, with cash flow strengthening, and anticipates continued AI-driven growth in 2026. Underlying sales grew by 4% and adjusted operating profit rose by 6% year-over-year. The company achieved margin expansion and strong cash generation. Key strategic developments include AI integration, new partnerships, and the acquisition of eDynamic Learning. For 2026, PSON forecasts mid-single digit sales growth and robust free cash flow.

Dell forecasts $50B AI server sales; Duolingo stock drops

Dell Technologies is forecasting that its AI server sales could reach $50 billion. This projection was highlighted by Morning Brief host Julie Hyman. The report also noted that CoreWeave's stock fell in pre-market trading due to memory chip shortage impacts on its guidance. Additionally, Duolingo shares dropped as the company signaled a slowdown in revenue growth. These market movements reflect ongoing trends and challenges within the technology sector.

Sources

• Dell stock jumps as strong AI server demand boosts sales forecast
• Dell 4Q Sales Jump 39% on Booming AI Demand
• Dell Jumps After Projecting AI Server Sales of $50 Billion
• Dell Stock Soars on Prediction AI Server Sales Will Double by 2027
• Dell Says AI Server Sales Could Double By 2027
• How to Fight AI? The ‘Rolex Effect’ Could Lift Apple and Other Consumer Brands
• Howard Marks makes 180 degree turn on AI after Claude tutorial. Here’s how he suggests investors approach it.
• SoundHound AI Q4 Earnings Call Highlights
• Business Rundown: Hardware vs. Software, Anthropic, And The Future Of AI
• Nvidia made $120 billion profit last year. Investors are worried.
• How to Take Advantage of moves in (AI)
• PSON: Sales and profit rose, cash flow strengthened, and AI-driven growth is set to continue in 2026
• Dell forecasts $50B in AI server sales, Duolingo stock drops