Dell, AVGO, SNOW: AI Full‑Stack Upgrades, Not Just Servers.

Dell, Broadcom, Snowflake

All three earnings reports beat expectations. Revenue, profit, and guidance all exceeded forecasts—none lagged.

However, the stock market's reaction post-earnings varied significantly.

1. Snowflake Climbs Out, Broadcom Gets Priced Perfectly

Let's start with $Broadcom(AVGO.US)

How good was this print? Revenue just under $29.6bn, +86%. AI semis alone did $16.7bn, up 221% y/y. EPS close to double. Free cash flow $13.7bn, or 46% of revenue.

Five years ago Wall Street would have given that a standing ovation. It traded down 2% after hours. With ±8% priced in going in, "spectacular" was already the baseline.

$AVGO 2X Long ETF(AVGX.US)$AVGO 1X Short ETF(AVS.US)

Q4 guidance came in at $34.8bn. But the whisper number going in had the high end above $35bn. Missing a rumor by less than 1% counted as a miss.

Looking at $Snowflake(SNOW.US)'s earnings, it tells a completely different story.

US software has been dead money for a couple of quarters, with the market taking a hatchet to multiples under the "SaaS is over" story. This quarter Snowflake just let the numbers argue: full-year product revenue guided to $6.07bn, +36%, against an initial 14.5%.

The reason is the billing model. They moved to usage-based pricing. For agents to make good calls, they need clean structured internal data — and the more often agents query, the more compute the underlying pipelines burn. Read it that way and it's a business that scales with token consumption.

Compressed multiple, plus a beat, plus a full-year raise. That's a short squeeze and a re-rate at the same time: +22%.

Software Sector$iShares Expanded Tech Software Sector ETF(IGV.US)

2X Long SNOW$T-Rex 2X Long SNOW Daily Target ETF(SNOU.US)

2. Dell: Observing the AI Server Boom + Assembly & OEM Premium

Box assembly — bolting together liquid cooling, power, storage, cabling and compute silicon for customers who all want something slightly different — is structurally a thin-margin business.

$Dell Tech(DELL.US) traditional server revenue doubled q/q to $10.5bn, and it expanded margin by 450bp in a single quarter, from 10.5% to 15.0%. Dell charges that project-management fee without flinching, because the market is currently paying up for supply chain integration. $Dell Tech(DELL.US) 2X Long ETF(DLLL.US)$DELL 2X Long ETF(DLLL.US)

3. Two Observations

Enterprise AI: Agents Decide Which Software Still Has Value

Pure tool-based software billed per seat, whose core functions are easily eroded by AI coding and workflows, is becoming a thing of the past. However, platform foundations that directly integrate into enterprise production environments, control client IT infrastructure, and charge based on usage and compute pipelines will long-term reap dividends from operational fees.

A reliable AI business execution hub is the underlying software layer capable of safely handling Agent calls, deducting payments, routing goods, and configuring systems.

Enterprise AI demand has tangibly translated into visible order growth and delivery cadence, deeply interlinked across diverse product lines including AI servers, traditional CPU servers, storage, and end-user PCs.

AI Capex Hasn't Peaked — It Went Full Stack

A year ago this was general-purpose GPUs for training, full stop. Now there's dedicated inference compute at scale, sold as solutions. Broadcom's custom silicon up 221% tells you the giants are putting ASICs against inference workloads — better economics, and less dependence on one supplier.

Look at what moved in Dell's cost structure: procurement growth for optics, Ethernet switching, liquid cooling and HBM has, for the moment, outrun the compute cores themselves.

Early AI demand was a solo act by the hyperscalers, and a lot of it was experimental. That's over. Neoclouds, sovereign AI and a broad base of enterprise buyers are all building at once.