Dell shares surge 12% in a single day, hitting a new high! Oracle designates it as a "core supplier" for its multi-billion dollar capital expenditures.

Oracle management named Dell as a core supplier during the earnings call, and with RBC Capital initiating coverage with an "outperform" rating, Dell Technologies' stock price hit a new high.

On September 11, Eastern Time, the three major U.S. stock indexes rebounded across the board, with funds flowing back into the AI hardware and semiconductor sectors. Dell, as a representative of the application of AI computing power, led the gains.

Previously, after the US stock market closed on September 10, Oracle's management reiterated at the earnings conference that its capital expenditure plan for fiscal year 2027 would be as high as $90 billion to $95 billion, to be used to expand AI data centers and related infrastructure, and directly named Dell and HPE as the main recipients of this expenditure.

Dell's stock price surged 11.98% on Friday, hitting a record high and pushing its market capitalization above $360 billion. The stock has risen nearly 350% year-to-date.

Oracle's financial statements provide the most direct visibility into its order book.

As reported by Wall Street Insights , Oracle released strong results after the market closed on September 10. Q1 cloud business grew by 121%, exceeding expectations, with RPO reaching $664 billion, and the company raised its full-year guidance.

During the earnings call, management reiterated that capital expenditures for fiscal year 2027 will reach $90 billion to $95 billion, with a focus on expanding AI data centers, deploying racks, and procuring network equipment.

The key turning point came with Hilary Maxson's direct statement at the meeting. She explicitly stated that the aforementioned huge expenditures would go to core suppliers such as Dell and HPE for the purchase of AI server racks, liquid cooling systems, and related network equipment. This wording directly made the order visibility down to the specific supplier level.

Oracle's concurrent disclosure of a massive backlog of AI cloud orders further confirms that enterprise demand for computing power remains in a phase of rapid expansion. For Dell, this means that its order base for the next few quarters has received clear endorsement from downstream cloud giants, significantly increasing the certainty of its performance.

RBC initiates coverage; bullish outlook focused on the AI infrastructure cycle.

RBC Capital Markets initiated coverage of Dell on Thursday 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 emphasized Dell's competitive moat in its supply chain, stating that its "best-in-class supply chain constitutes a competitive barrier, which is particularly evident during periods of supply disruption, with customers increasingly viewing Dell as a reliable and stable partner during periods of supply volatility or shortages."

Dell was one of the first suppliers to ship NVIDIA's Grace Blackwell NVL72 racks, and its deep partnership with NVIDIA gives it a significant advantage in ensuring GPU supply.

The company's AI server customer base has exceeded 6,500, covering emerging cloud service providers (including CoreWeave), sovereign buyers, and large enterprises. In the past three quarters, it has added 3,300 new customers, and the risk of customer concentration has continued to decline.

As previously reported by Wall Street News , Dell's Q2 FY2027 earnings report showed that AI server revenue reached $16.4 billion, a year-on-year increase of 100%; the company's AI server order amount reached a record $60.9 billion in the quarter, and the backlog of AI server orders at the end of the quarter reached $95 billion.

It's worth noting that company executives stated in the earnings call that rising costs of components such as memory have driven up product prices, a factor that has been incorporated into the revised full-year guidance. Dell had previously raised its full-year revenue forecast for the current fiscal year to $192 billion, an increase of nearly 70% compared to the same period last year.

In addition to fundamental factors, Dell recently gained eligibility for inclusion in the S&P 100 index, further enhancing its visibility and investment value among institutional investors.

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