Dell surges 12% in a single day to a record high, named by Oracle as a "core supplier" for 10 billion capital expenditure

Oracle management named Dell as a core supplier during its earnings call. Coupled with RBC Capital's initial "outperform" rating, Dell Technologies’ share price reached a record high.

On September 11, Eastern Time, all three major U.S. stock indexes rebounded, with funds flowing back into the AI hardware and semiconductor sectors. As a representative of AI computing power deployment, Dell led the gains in one stride.

Earlier, after the U.S. market closed on September 10, Oracle’s management reiterated during its earnings call that fiscal 2027 capital expenditure would be as high as $90 to $95 billion, aimed at expanding AI data centers and related infrastructure, and directly named Dell and HPE as the main undertakers of this expenditure.

On Friday, Dell's stock surged 11.98% to hit a historic high, with its market value surpassing $360 billion. So far this year, its cumulative gain is close to 350%.

According to Wallstreetcn, on September 10 after market close, Oracle released strong results. Q1 cloud business grew 121%, exceeding expectations, with RPO reaching $664 billion, and the company raised its full-year guidance.

During the earnings call, management reiterated that fiscal 2027 capital expenditure would reach $90 to $95 billion, with a primary focus on AI data center expansion, rack deployment, and network equipment procurement.

The key turning point came when Hilary Maxson made a clear statement during the call. She emphasized that this massive spending would go to core suppliers such as Dell and HPE for the procurement of AI server racks, liquid cooling systems, and supporting network equipment. This language directly translates order visibility to specific suppliers.

The huge AI cloud order backlog disclosed at the same time by Oracle further confirms that enterprise demand for computing power is still in a phase of rapid expansion. For Dell, this means that order sources for the coming quarters now have a clear endorsement from downstream cloud giants, significantly improving the certainty of performance fulfillment.

On Thursday, RBC Capital Markets released a research report, initiating coverage on Dell with an "outperform" rating. Analyst David Paige wrote in the report:

We see no signs of a slowdown and believe Dell will continue to benefit from the multi-year AI infrastructure spending cycle.

Paige also specifically highlighted the competitive moat of Dell’s supply chain, calling it "best-in-class and a source of competitive advantage, especially during times of supply disruptions. Customers increasingly see Dell as a stable and reliable partner during supply fluctuations or shortages."

Dell is one of the first suppliers to ship NVIDIA’s Grace Blackwell NVL72 racks. Its deep partnership with NVIDIA gives it a significant advantage in ensuring GPU supply.

The company’s AI server customer base has now surpassed 6,500, covering emerging cloud service providers (including CoreWeave), sovereign buyers, and large enterprises. In the past three quarters alone, 3,300 new customers were added, reducing customer concentration risk.

As previously mentioned by Wallstreetcn, Dell’s second-quarter fiscal 2027 report showed that AI server revenue for the quarter reached $16.4 billion, up 100% year-on-year; AI server orders for the quarter hit a record $60.9 billion, with quarter-end AI server backlog reaching $95 billion.

It is worth noting that company executives stated on the earnings call that rising costs for components such as memory drove up product prices, and this factor was also included in the upwardly revised annual guidance. Dell previously raised its full-year revenue forecast to $192 billion for this fiscal year, an increase of nearly 70% over the same period last year.

In addition to fundamental factors, Dell was recently recognized for inclusion in the S&P 100 Index, further boosting its profile and allocation value among institutional investors.