--- title: "NVDA Supply Ramp? DELL: Good Times Can Get Even Better!" type: "Topics" locale: "en" url: "https://longbridge.com/en/dolphin/post/43707682.md" description: "DELL released FY2027 Q2 results after hours, Beijing time Sep 2. The quarter ended in Jul 2026.1) AI revenue: Within ISG, the high-growth AI server line delivered only modest QoQ incremental revenue. This is not a concern, as the backlog swelled again on massive order intake.AI server revenue was approx. $16.4bn, up $0.3bn QoQ and ahead of the Street's $15.8bn. New AI orders surged to $60.9bn..." datetime: "2026-09-02T02:39:16.000Z" locales: - [en](https://longbridge.com/en/dolphin/post/43707682.md) - [zh-CN](https://longbridge.com/zh-CN/dolphin/post/43707682.md) - [zh-HK](https://longbridge.com/zh-HK/dolphin/post/43707682.md) author: "[Dolphin Research](https://longbridge.com/en/dolphin.md)" generator: "portal-rs" --- # NVDA Supply Ramp? DELL: Good Times Can Get Even Better! DELL.N released its FY2027 Q2 results (quarter ended Jul 2026) after the U.S. close on Sep 2 Beijing time. **1\. AI revenue: Within ISG, growth in AI servers was modest QoQ this quarter. That is not a concern, as new orders surged again and backlog exploded.** **AI server revenue was Approx. $16.4bn, up $0.3bn QoQ and ahead of market estimates (~$15.8bn).****New AI orders jumped to $60.9bn, taking AI backlog to $95.0bn by quarter-end.** Dolphin Research estimates AI server revenue could approach ~$20bn next quarter, rising by $3bn+ QoQ, with the Rubin ramp unlocking faster AI revenue. **2\. Guidance**: $Dell Tech(DELL.US) **guides Q3 FY2027 revenue of ~$49.0bn, ahead of the Street (~$44.0bn).** Q3 GAAP EPS is guided to ~$6, above the Street (~$4). **With full-year guidance raised to $190-194bn (vs. $165-169bn last quarter), well above the Street’s revised $170-180bn, Q4 revenue can be inferred at ~$50-54bn, implying only a $1-5bn QoQ increase.** **Even with Rubin ramping, this full-year guide still looks conservative, and management may lift it again.** **3\. Ops metrics: Revenue was ~$47.0bn, +58% YoY and ahead of the Street (~$45.0bn).** QoQ revenue rose by ~$3.1bn, driven mainly by ISG. **GPM was ~21%, up 300bps QoQ, well above the Street (~17.4%).** **Gross margin rebounded sharply (pricing as the primary driver, mix as secondary).** **To offset higher storage costs, the company raised prices across product lines, easing concerns over 'revenue up but profit flat'.** **4\. ISG (Infrastructure Solutions): Includes traditional servers, AI servers, and storage.** **ISG revenue was ~$31.8bn, +$2.8bn QoQ, far above the Street (~$29.7bn). The QoQ delta was mainly driven by traditional servers; AI was relatively flat QoQ.** **Traditional servers contributed ~$10.5bn, +122% YoY and above the Street (~$9.4bn), the key source of the beat.** Demand was driven by two factors: (1) upgrades across the installed base, and (2) substantial CPU compute needed to support AI and agentic workflows. **5\. CSG (Client Solutions): Revenue was ~$15.0bn, +20% YoY and in line with the Street (~$15.0bn).** Growth was mainly pricing-led. **Client revenue remains commercial-heavy. Commercial revenue was ~$13.2bn, +22% YoY,** while consumer revenue was ~$1.84bn, +7% YoY. **Minutes please**[**click**](https://longbridge.com/en/dolphin/post/43706081) **Dolphin take: AI orders are off the charts, pricing protects margins, guidance remains conservative.** DELL delivered an across-the-board beat, with a ~$3.1bn QoQ revenue uplift driven by ISG (servers). **Traditional server refresh demand was particularly strong.** AI revenue reached ~$16.4bn, up ~$0.3bn QoQ, **beating the Street (~$15.8bn).** **New AI orders surged to ~$60.9bn, taking backlog to ~$95.0bn.** **AI backlog has climbed for three consecutive quarters ($43.0bn → $51.3bn → $95.0bn), while this quarter’s AI revenue only rose ~$0.3bn QoQ.** This signals demand remains robust, constrained by upstream supply. As Rubin ramps in 2H, AI revenue should accelerate. **Management raised FY2027 (CY2026) revenue guidance to $190-194bn, +$25bn vs. last quarter’s $165-169bn.** If Q4 lands at ~$50-54bn, and given Rubin’s ramp, Dolphin Research still views guidance as conservative and expects a potential move above ~$195bn. Beyond the print, the market is watching the following. **1) AI servers** DELL shipped its first GB200 NVL72 rack to CoreWeave and maintains deep collaboration with NVDA. **DELL now offers customers Blackwell and Vera Rubin configurations and is involved in NVDA’s next-gen Feynman platform.** **Post-earnings, NVDA raised its CY2027 outlook: (1) five major CSPs’ capex to ~$1.3tn (vs. prior market view $1.1-1.2tn); (2) FY2028 (corresponding to CY2027) revenue growth guide of 70%+ (vs. prior ~40%).** **As part of NVDA’s ecosystem, DELL investors expect higher full-year guidance and even an outlook for the next fiscal year (FY2028).** **DELL offers full-stack services**, spanning desktop AI workstations (GB10/GB300 DGX) → rack servers → storage → switches → software orchestration (OpenManage) → services (installation, tuning, 24/7 support). This end-to-end capability positions DELL to win more AI cloud and enterprise deals. **2) CSG (PC)** With storage tight, the PC market remains pressured; Q2 global PC shipments were ~68.2mn units, down YoY. **DELL’s CSG revenue rose 20% YoY, which Dolphin Research attributes mainly to ASPs (partly passing through storage price increases),** while units remain constrained by soft market demand. Consensus expects storage prices to peak in 1H FY2027 and ease in 2H. **Most storage majors have LTAs in place; even if prices retrace, a sharp collapse is unlikely, and levels may stay relatively high.** **This should ‘partially alleviate’ PC pressure rather than make it ‘disappear’.** DELL’s current market cap is ~$276bn, implying ~12x PE on FY2028 (CY2027) post-tax core OP (assuming 2-year revenue CAGR of ~36%, GPM ~17%, tax rate ~17.5%). **Historically trading at ~8-20x PE, DELL now sits below the midpoint after the earnings upgrade.** Compared with other AI ecosystem names, DELL’s stock has pulled back less, **largely due to its sizable backlog.** With NVDA Rubin ramp deliveries ahead, DELL has clear growth visibility. **Two focal points in this print**: **(1) AI revenue rose modestly QoQ (~$0.3bn), but backlog jumped ~$44bn, underscoring strong demand constrained by supply, with Rubin shipments likely to beat,** **(2) pricing actions passed through storage inflation, lifting GPM, a sign of bargaining power in the chain.** **Overall, this was a strong report, showcasing solid AI demand, pricing power to offset cost pressure, and a surprise from traditional servers.** Even after lifting full-year guidance, management remains conservative and may raise again. **Unlike many growth narratives, DELL’s story is anchored by tangible earnings and backlog.** Upward estimate revisions can directly absorb valuation; DELL now trades near ~12x PE. With NVDA’s explicit CY2027 high-growth outlook, investors look for DELL to provide next fiscal guidance on top of the raised full-year view. Rubin-driven visibility could push DELL’s multiple toward ~15x PE or above. Below are Dolphin Research’s detailed DELL data and charts: \ Related Dolphin Research posts on DELL.N: Earnings May 29, 2026 call '[DELL (Trans): Demand still outstrips supply; order reserves are multiples of backlog](https://longportapp.cn/en/topics/41245862)' May 29, 2026 earnings take '[DELL: AI surges, traditional warms, the veteran is 'fully charged'!](https://longportapp.cn/en/topics/41243746)' Feb 27, 2026 call '[DELL (Trans): AI orders exclude Rubin; traditional can stay positive](https://longportapp.cn/en/topics/38934071)' Feb 27, 2026 earnings take '[DELL: AI doubles; can it mute 'storage tightness' worries?](https://longportapp.cn/en/topics/38932092)' Nov 26, 2025 call '[DELL (Trans): Value lies in L11+ end-to-end solutions](https://longportapp.cn/en/topics/36730886)' Nov 26, 2025 earnings take '[DELL: Storage inflation adds friction; AI guidance supports](https://longportapp.cn/en/topics/36727893)' Aug 29, 2025 earnings take '[DELL: Are 'frenzied' AI server orders just fleeting?](https://longportapp.cn/en/topics/33471980)' Deep dive: Jul 11, 2025 deep dive '[AI double buff: Is DELL set for another spring?](https://longportapp.cn/en/topics/31713972)' Jul 9, 2025 deep dive '[DELL: AI tide rises; can the veteran stage a comeback?](https://longportapp.cn/en/topics/31614330)' Risk disclosure and disclaimer: [Dolphin Research disclaimer and general disclosures](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### Related Stocks - [DELL.US](https://longbridge.com/en/quote/DELL.US.md) - [CRWV.US](https://longbridge.com/en/quote/CRWV.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [VERA.US](https://longbridge.com/en/quote/VERA.US.md) - [DGX.US](https://longbridge.com/en/quote/DGX.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**