Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; software and peripherals; and consulting, support, and deployment services. The CSG segment provides desktops, workstations, and notebooks; displays, docking stations, keyboards, mice, webcam, and audio devices; and third-party software and peripherals, as well as configuration, support and deployment, and extended warranty services. It is involved in cybersecurity technology-driven security solutions to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats; originating, collecting, and servicing customer financing arrangements; and the resale of VMware products and services. The company serves enterprises, public institutions, and small and medium-sized businesses through its direct sales channel, value-added resellers, system integrators, distributors, and retailers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.

Dell Technologies Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, незначительно упал. Медведи в растерянности.

Medium index, slightly down. The bears are confused.

Слабый индекс, значительно вырос. Рынок не поддерживает быков.

Weak index, significantly up. The market does not support the bulls.

Средний индекс, значительно упал. Рынок на стороне медведей.

Medium index, significantly down. The market is on the bears' side.

Слабый индекс, незначительно упал

Слабый индекс, значительно вырос. Увеличился приток средств в шорты.

Weak index, significantly up. The inflow of funds into shorts has increased.

Key Points
Most S&P 500 index funds are market-cap weighted.
An alternative approach is an equal-weighted fund.
Both can serve you well, and one looks less risky.
What's the investment I've recommended most often for most people? A low-fee exchange-traded fund (ETF) that tracks the S&P 500 index, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) or the SPDR S&P 500 ETF (NYSEMKT: SPY). I suspect many of my colleagues would say the same. Even Warren Buffett has recommended it. In his 2016 letter to shareholders, he noted, "Over the years, I've often been asked for investment advice... My regular recommendation has been a low-cost S&P 500 index fund."
So I'm sorry to point out that it's not a perfect kind of investment. It has some issues.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
What's wrong with the S&P 500?
Here's a big one: It's way more concentrated than most people realize. For example, check out its recent top 10 components:
Company
Weight in S&P 500
Nvidia
7.43%
Alphabet (A and C share classes)
6.59%
Apple
6.48%
Microsoft
4.35%
Amazon.com
3.92%
Broadcom
2.74%
Tesla
2.26%
Meta Platforms
2.17%
Micron Technology
1.65%
Berkshire Hathaway
1.56%
Those weightings may not seem huge until you remember that there are about 490 other companies. These 10 above represent about 2% of the index's holdings but 39% of its total value. So if you invest in the S&P 500 because it's a great way to be quickly and easily invested in 500 of America's biggest companies, you are invested in those companies, but more than a third of your investment is in these 10 companies alone.
Here are the weightings of some other companies:
Company
Rank in S&P 500
Weight in S&P 500
McDonald's
54
0.30%
PepsiCo
59
0.29%
Pfizer
80
0.22%
Kroger
261
0.06%
Clorox
468
0.02%
As you can see, you won't have much invested in the vast majority of the companies.
That can be OK, though. Maybe you like those tech heavyweights in the top 10 -- which include all of the "Magnificent Seven" stocks (Apple, Amazon, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla). Maybe you want to invest in the 500 companies, with most of your money going to the biggest. After all, most of them have grown very rapidly over the past few years.
Keep in mind, though, that when there's a stock market crash or correction, as there invariably is now and then, those high-flying growth stocks are often the ones that fall harder. That, too, can be OK as long as you have a very long-term investing period. But it's not ideal.
Is there a better alternative to the S&P 500?
There is an alternative to standard S&P 500 index funds that's worth considering: An equal-weighted one. Standard ones are weighted by market cap, meaning the larger a company's market cap, the greater its weighting. The Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP), in contrast, is equal-weighted. The 500 components are rebalanced quarterly, so between rebalancings you'll see fluctuations in the weightings as various stocks gain or lose value from day to day and year to year. Check out its recent top 10 holdings:
Company
Weighting
Dell Technologies
0.48%
SanDisk
0.48%
Intel
0.42%
Advanced Micro Devices
0.42%
Humana
0.40%
Micron Technology
0.40%
Hewlett Packard Enterprise
0.40%
Seagate Technology
0.40%
ON Semiconductor
0.35%
Western Digital
0.35%
Note that Micron Technology appears in both top 10 lists, but in the earlier one, it has a 1.67% weighting, while in the fund above, it has a much lower weighting of 0.35%. This kind of index fund has you much more invested in the other 490 stocks beyond the top 10 -- though, of course, each stock has a relatively minor weighting. But every promising stock will have an equal chance of outperforming for you.
An equal-weighted S&P 500 ETF may not grow as fast as a market-cap-weighted one, but during a market downturn, it may hold its value a bit more. Over the past 15 years, this ETF has averaged annual gains of about 12%, while the Vanguard S&P 500 ETF has averaged 14.4%. There's a trade-off, but it's not enormous. Give equal-weighted S&P 500 index funds some consideration.
Should you buy stock in Vanguard S&P 500 ETF right now?
Before you buy stock in Vanguard S&P 500 ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Selena Maranjian has positions in Advanced Micro Devices, Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Meta Platforms, Micron Technology, Microsoft, Nvidia, and Pfizer. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Hewlett Packard Enterprise, Intel, Meta Platforms, Micron Technology, Microsoft, Nvidia, Pfizer, Tesla, Vanguard S&P 500 ETF, and Western Digital. The Motley Fool recommends Kroger and ON Semiconductor and recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Have S&P 500 Index Funds, Often Touted as the Best Stock Investments, Become Dangerous? There's a Worrisome Development -- and a Possibly Better Alternative.

Key Points
Nvidia has dominated the AI growth story since the early days of the AI boom.
The company recently reported an 85% increase in quarterly revenue.
Nvidia (NASDAQ: NVDA) has been one of the biggest artificial intelligence (AI) success stories so far. The company provides a crucial tool -- and one of the highest quality -- used in the development of this technology. This is the graphics processing unit (GPU), a chip that powers important tasks such as the training of models.
The company's GPU strengths and its portfolio of related products and services have helped it to report record levels of earnings quarter after quarter. And this has lifted the stock too, with gains of more than 400% over three years.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Some investors have worried that, after such a performance, Nvidia may lose momentum. It's true that there are plenty of rivals in the AI chip space, from chip designers like Advanced Micro Devices to some of Nvidia's customers, like Amazon, that have created their own chips.
But my prediction is Nvidia will stay ahead of the crowd -- and the second half of this year actually will represent a game-changing moment for the AI giant. Let's take a closer look.
Nvidia's GPUs over time
So, first, a bit of background on this market leader and where it stands in today's AI environment. Nvidia's GPUs have been around for decades, and in their early days, they mainly served the gaming market. The company has since expanded their use, and this was made possible by Nvidia's creation of CUDA, a parallel computing platform.
And about a decade ago, recognizing the AI opportunity, Nvidia tailored its GPUs for this industry. This, along with the creation of other products to support the GPU in its AI tasks, helped Nvidia build an AI empire. In the latest quarter, the company reported an 85% increase in revenue to more than $81 billion. And gross margin has remained pretty consistently above 70%, showing high profitability on sales.
As mentioned, Nvidia isn't alone in the space. Rivals sell GPUs or other similar AI chips, and they, too, have delivered significant growth. Yet Nvidia has maintained its lead, due to its brand strength and the quality of its products, as well as its focus on innovation.
But some investors have wondered how long this will last, particularly as rivals too have been supercharging their innovation engines -- and Nvidia's GPUs carry the highest price tag. Meanwhile, the needs of AI are changing. For example, the early stage of the AI story was all about training models, and for this, the GPU was critical.
The era of AI agents
Today, we're moving into the era of AI agents, involving the actual application of AI to problems. In agentic AI, the AI agent acts as a human would -- considering a problem and taking steps, in many cases multiple steps, to solve it. And to power this process, another type of chip is most needed: the central processing unit (CPU). These are the general chips found in all computers.
Nvidia hasn't been a big player in the CPU market. Intel and AMD have been longtime leaders in this market, but if Nvidia meets its goals, this might change.
And this leads me to my prediction. The second half of the year could be a key moment for Nvidia because it plans to take two game-changing steps: It aims to release its Vera Rubin platform for data centers, and this includes the company's first-ever stand-alone CPU. And, for the PC market, it aims to release a new superchip, the Nvidia RTX Spark. This chip, including an Nvidia GPU and an Nvidia CPU, will launch in Windows laptops this fall from Microsoft, Dell, and others.
So, as of the second half, Nvidia will advance in the CPU market in a big way -- aiming for share in data center CPUs and in the PC market. Nvidia says the stand-alone CPU market is worth about $200 billion, and the company says it's on track for leadership.
The big news here is that Nvidia is maintaining its GPU dominance and eventually may hold a similar position in the broader CPU market. This could greatly increase the company's revenue growth potential over time -- and that's why I predict that the launches of these two CPU products will represent a game-changing moment in the Nvidia story.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 13, 2026.
Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Intel, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: The Second Half of 2026 Will Be a Game-Changing Moment for Nvidia

Adobe ADBE reported second-quarter fiscal 2026 non-GAAP earnings of $5.96 per share, beating the Zacks Consensus Estimate by 2.23% and increasing 18% year over year.
Total revenues were $6.618 billion, which beat the consensus mark by 2.5% and increased 13% year over year on a reported basis and 11% on a constant-currency basis. AI-first ARR more than tripled year over year, surpassing $500 million.
Adobe shares were down 6.25% at the time of writing this article. ADBE dropped 37.5% in the year to date period, underperforming the Zacks Computer & Technology sector’s return 13.1% and the Zacks Computer Software industry’s drop 17.2%.
ADBE’s Top Line in Detail
Subscription revenues were $6.416 billion, which represented 97% of total revenues, up 13.7% on a year-over-year basis. Product revenues totaled $89 million (1.3% of the total revenues), up 1.1% year over year. Services and other revenues were $113 million (1.7% of the total revenues), down 21.5% year over year.
Adobe Inc. Price, Consensus and EPS Surprise
Adobe delivered record revenues in the reported quarter, driven by strong subscription bookings, revenue conversion and AI-driven demand across its customer groups. Total Adobe ARR at quarter-end was $27.1 billion, including approximately $480 million from the acquisition of Semrush.
Customer Group subscription revenues were $6.39 billion, up 14% year over year and 12% at constant currency. The figure included approximately $40 million from Semrush.
Business Professionals and Consumers’ subscription revenues were $1.85 billion, representing 16% year-over-year growth on a reported basis and 15% at constant currency. Creative and Marketing Professionals subscription revenues were $4.54 billion, up 13% year over year on a reported basis and 11% at constant currency.
ADBE’s Q2 Operating Details
Adobe reported second-quarter fiscal 2026 GAAP gross profit of $5.90 billion compared with $5.23 billion in the year-ago quarter. GAAP gross margin was 89.2%, expanding 10 basis points year over year.
Operating expenses were $3.66 billion, up 17.2% year over year. As a percentage of total revenues, operating expenses increased 220 basis points year over year to 55.4%.
Non-GAAP operating income was $2.94 billion compared with $2.67 billion in the year-ago quarter. The adjusted operating margin was 44.5%, which contracted 100 basis points year over year.
ADBE’s Balance Sheet & Cash Flow
As of May 29, 2026, the cash and short-term investments totaled $5.62 billion, down from $6.89 billion as of Feb. 27, 2026. Long-term debt as of May 29 was $4.8 billion compared with $5.38 billion as of Feb. 27.
Cash generated from operations was $2.16 billion in the reported quarter compared with $2.96 billion in the previous quarter.
Remaining Performance Obligations were $22.27 billion exiting the quarter. The company exited the quarter with approximately $27 billion remaining under its repurchase authorizations, including the new $25 billion authorization announced in April.
Adobe Raises Q3 and FY26 Guidance
For the third quarter of fiscal 2026, Adobe expects total revenues between $6.67 billion and $6.72 billion. Adobe expects Business Professionals and Consumers’ subscription revenues between $1.87 billion and $1.89 billion.
Creative and Marketing Professionals subscription revenues are expected to be between $4.61 billion and $4.64 billion. Non-GAAP operating margin is expected to be 44%. Adobe expects fiscal third-quarter non-GAAP earnings between $6.05 and $6.10 per share.
For fiscal 2026, Adobe now expects total revenues between $26.5 billion and $26.6 billion. Adobe expects Business Professionals and Consumers’ subscription revenues between $7.44 billion and $7.48 billion. Creative and Marketing Professionals subscription revenues are expected to be between $18.21 billion and $18.27 billion.
Non-GAAP operating margin is expected to be 45%. Adobe expects fiscal 2026 non-GAAP earnings between $24.35 and $24.45 per share. Total Adobe ending ARR growth is expected to be 10.2% year over year.
Zacks Rank & Stocks to Consider
Currently, ADBE carries a Zacks Rank #3 (Hold).
Dell Technologies DELL, Teradyne TER and Silicon Motion Technology SIMO are some better-ranked stocks that investors can consider in the broader sector.
Dell Technologies, Teradyne and Silicon Motion each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Dell Technologies, Teradyne and Silicon Motion is currently pegged at 26.35%, 34.29% and 53.56%, respectively.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
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Adobe Inc. (ADBE) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Adobe Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall

Super Micro Computer SMCI is on track to scale rack production capacity to more than 6,000 AI racks per month by the end of fiscal 2026, including 3,000 direct liquid cooling (DLC) racks monthly. SMCI is already shipping 150kW AI racks in volume and preparing 250kW and 500kW rack solutions to support future high-density AI training and inference workloads.
SMCI’s massive expansion plans and demand for its infrastructure support create a need for its data center management and orchestration suite, including SuperCloud Composer and SuperCloud Director, which enables customers to manage tens of thousands of systems and racks in real time while optimizing workload orchestration, cooling, safety conditions and power usage.
Super Micro Computer's software strategy is becoming an increasingly important component of its AI infrastructure business, especially in its Data Center Building Block Solution (DCBBS). DCBBS has evolved into a comprehensive infrastructure platform that integrates more than 10 subsystems, including cooling distribution units, liquid-to-air heat exchangers, chilled doors, power shelves, battery backup systems, water towers, dry towers, high-speed switching, data center management software and associated services.
SMCI’s software layer serves as the intelligence that unifies these components into a single deployment and management platform. SMCI’s software-enabled DCBBS platform significantly accelerates AI data center construction by providing pre-designed and pre-validated infrastructure blocks that reduce time-to-deployment and time-to-online while lowering power consumption, water usage and overall operating costs.
Given these tailwinds, SMCI’s revenues from the software product line increased to $46 million in the third quarter of fiscal 2026. The company was only able to generate less than $10 million each quarter earlier. This highlights SMCI’s growing ability to monetize software and services alongside hardware deployments.
How Competitors Fare Against SMCI
The AI data center market is likely to grow at an unprecedented pace throughout 2026 and 2027. Big players like Hewlett Packard Enterprise HPE and Dell Technologies DELL are competing with SMCI in this space.
Dell Technologies is a major supplier of servers and storage systems, with a broad customer base across enterprises and cloud providers. Its scale, established distribution and service offerings give it an edge in winning large contracts. However, Dell Technologies has not grown as quickly as SMCI in AI-specific systems; its ability to bundle hardware with services makes it a strong rival.
Hewlett Packard Enterprise is also expanding aggressively into AI and high-performance computing. Its GreenLake platform provides customers with flexible, cloud-like consumption models, which can be attractive to enterprises. Hewlett Packard Enterprise’s focus on hybrid cloud and AI workloads positions it as a direct competitor in areas where SMCI is seeking growth through its DCBBS strategy.
Hewlett Packard Enterprise offers a range of servers, including HPE ProLiant, HPE Synergy, HPE BladeSystem and HPE Moonshot servers. Dell Technologies has built the Dell AI Factory in collaboration with NVIDIA. Dell also collaborated with Red Hat Enterprise Linux AI for Dell PowerEdge servers.
SMCI’s Price Performance, Valuation and Estimates
Shares of Super Micro Computer have gained 9.2% year to date compared with the Zacks Computer – Storage Devices industry’s growth of 278.1%.
SMCI YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, SMCI is trading at a discount at a forward 12 Month P/S multiple of 0.38X compared with the industry’s P/S multiple of 4.34X.
SMCI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 24.27% and 22.9%, respectively. Estimates for fiscal 2026 and 2027 earnings have remained unchanged over the past 30 days.
Image Source: Zacks Investment Research
Super Micro Computer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can SMCI's Software Strategy Strengthen Data Center Deployments?

In the Artificial Intelligence (AI) space, NVIDIA Corporation NVDA has been one of the leaders during the AI boom. However, there are many other companies in the AI ecosystem that are performing extremely well as they are leaders in growing the infrastructure needed for AI spending. Two such companies are Micron Technology MU and Dell Technologies DELL. Over the past year, both stocks have more than doubled. While MU has risen 760.34%, DELL has gained 257.25%. On the other hand, NVIDIA is up by 43.63%.
Micron Benefits From AI-Driven Memory Cycle
Micron is benefiting from the AI boom currently in place. Their High Bandwidth Memory (“HBM”) is used in AI-optimized accelerators and in the high-end servers deployed in data centers. Therefore, the company is embedded in the growth engine of the new AI ecosystem.
Micron reported positive results for its second-quarter fiscal 2026. Revenues reached $23.86 billion and non-GAAP EPS of $12.20 per share. For the third quarter, the company forecasts fiscal 2026 revenues of $33.5 billion for memory, which continues to be impacted by increasing demand for AI applications.
Micron is one of the few suppliers that can produce HBM in volume and thus benefit greatly from the shift to AI memory in the datacenter, as demand for memory is expected to continue to grow quickly while supply remains constrained.
Dell Gains AI Infrastructure Momentum
Dell Technologies, one of the leading producers of AI-optimized servers, storage systems, and end-to-end infrastructure solutions, is poised to benefit to a large extent from rapidly growing spending on AI.
Dell reported its first-quarter fiscal 2027 revenues of $43.8 billion. AI server revenues surged 757% to $16.1 billion, as AI-optimized servers are seeing strong demand. In terms of orders, Dell reported $24.4 billion in AI orders for the quarter. Management has upped its fiscal 2027 AI revenue estimate to $60 billion.
Dell has a large and growing AI backlog and a growing base of large enterprise customers. As a result, its position in the AI infrastructure market is solidifying. The company’s partnerships with the leading semiconductor companies are also enhancing Dell’s position within the AI-focused ecosystem of infrastructure developers.
Both stocks carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Everyone's Buying NVIDIA - Here Are 2 Smarter AI Stocks for 2026

Key Points
Oracle's fiscal 2026 capital expenditures reached $55.7 billion, topping the $50 billion management had forecast.
Nvidia and AMD supply the graphics processing units at the center of Oracle's cloud build-out.
Dell expects about $60 billion of AI server revenue this fiscal year.
Oracle (NYSE: ORCL) shares are selling off. The database giant reported results for its fiscal fourth quarter of 2026 (the period ended May 31, 2026) Wednesday afternoon. The stock fell as much as 11% in early trading Thursday and finished the trading day down about 8.5%.
The quarter itself wasn't weak. Revenue rose 21% year over year to $19.2 billion, with cloud revenue jumping 47% to $9.9 billion. And remaining performance obligations (contracted revenue the company hasn't yet delivered) ballooned to $638 billion -- up $85 billion in just three months.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Instead, investors seem focused on the bill. Oracle's capital expenditures hit $55.7 billion in fiscal 2026 -- above the $50 billion management forecast in March -- and free cash flow came in at negative $23.7 billion. Further, spending is set to climb again in fiscal 2027, with management guiding for a net cash outlay of about $70 billion after customer prepayments. And Oracle plans to raise about $40 billion in new debt and equity.
But every dollar of that spending lands on a supplier's income statement. Here's a closer look at three companies positioned to capture it.
1. Nvidia
The most obvious beneficiary is AI (artificial intelligence) chipmaker Nvidia (NASDAQ: NVDA). Oracle's flagship Zettascale10 superclusters -- including the system behind OpenAI's Stargate site in Texas -- are built on Nvidia hardware, with initial deployments targeting up to 800,000 of the chipmaker's graphics processing units (GPUs). On the fiscal fourth-quarterearnings call Oracle co-CEO Clay Magouyrk said the company intends to bring almost one gigawatt of capacity online this quarter -- about as much as it added in all of fiscal 2026.
Notably, most of Oracle's recent contract growth came from large AI deals in which the customer either prepaid for the GPUs or bought the chips and supplied them to Oracle directly. Those portions of its contracts now total $75 billion. In other words, the chips get bought whether or not Oracle fronts the cash.
Nvidia, of course, has already been demonstrating an inflection in sales. In its fiscal first quarter of 2027 (the period ended April 26, 2026), revenue grew 85% year over year to $81.6 billion, and data center revenue soared 92% to $75.2 billion as its Blackwell platform ramped.
2. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) may have the most direct claim on Oracle's checkbook. Last October, the two companies said Oracle's cloud unit will be a launch partner for the first publicly available AI supercluster built on AMD's Instinct MI450 GPUs, with an initial deployment of 50,000 chips starting in the third quarter of calendar 2026 -- a window that opens next month.
AMD's data center revenue rose 57% year over year to $5.8 billion in the first quarter, driven by its EPYC server processors and Instinct GPU shipments. But the MI450, paired with the company's Helios rack systems, is the launch investors are watching.
"Customer engagement around MI450 Series and Helios is strengthening," said AMD chair and CEO Lisa Su in the company's first-quarter earnings release, adding that leading customer forecasts were exceeding AMD's initial expectations.
3. Dell Technologies
GPUs don't go into data centers alone. They arrive inside servers and racks from companies like Dell Technologies (NYSE: DELL). The infrastructure specialist booked $24.4 billion of AI orders in its fiscal first quarter of 2027 (the period ended May 1, 2026) and recognized $16.1 billion of AI server revenue. Dell now expects about $60 billion of AI server revenue this fiscal year, up from its prior $50 billion forecast.
"We exited the quarter with a record $51.3 billion of AI backlog," said Dell vice chairman and chief operating officer Jeff Clarke in the company's fiscal first-quarterearnings call He added that Dell's pipeline remains multiples of that backlog and that the company's constraint in the second half is securing components, not finding demand.
Dell doesn't break out AI orders by customer. But the data center construction wave Oracle is helping fund is exactly the market Dell sells into.
The suppliers get paid first
So, what should investors make of a customer whose spending is climbing while its stock is punished for it?
Suppliers book revenue when hardware ships. Oracle recoups its investment only as customers consume contracted cloud services over many years. While the market debates whether $638 billion of contracts will convert into profitable revenue, the chip and server makers will have already been paid.
Of course, supplier exposure carries its own risks. If AI demand disappoints or financing tightens, hardware orders could slow quickly -- and Oracle's plan to raise about $40 billion is a reminder that this spending leans on a willing capital market.
Overall, I think the suppliers offer a simpler way to benefit from Oracle's build-out than Oracle itself. After all, the spending plans that spooked Oracle investors this week are the same ones filling its suppliers' order books.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $442,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,230,114!*
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Daniel Sparks and his cliens have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Oracle. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Oracle Stock Is Selling Off on Its Massive AI Spending Plans. Here's Who Gets Paid When Oracle Spends.

Super Micro Computer (NASDAQ:SMCI), a developer of server and storage solutions based on modular and open-standard architecture, closed at $31.97, up 9.22%. The stock rose as investors evaluated the company’s $7 billion equity and equity-linked financing plan for its large but cancellable AI server backlog, with ongoing attention to dilution risk and legal overhangs.
The company’s trading volume reached 243.4 million shares, which is about 409% above compared with its three-month average of 47.8 million shares. Super Micro Computer went public in 2007 and has grown 3550% since its IPO.
How the markets moved today
S&P 500 (SNPINDEX:^GSPC) rose 1.75% to 7,394.30, while the Nasdaq Composite (NASDAQINDEX:^IXIC) climbed 2.54% to 25,809.66 as growth and tech names advanced. Among computer hardware peers, Dell Technologies (NYSE:DELL) closed at $391.45 (+5.85%) and Hewlett Packard Enterprise (NYSE:HPE) ended at $46.80 (+2.88%), highlighting broad strength across server and infrastructure stocks.
What this means for investors
Super Micro Computer shares recovered following sharp declines related to its planned $7 billion equity and equity-linked financing. The capital raise will fund component purchases for approximately $39 billion in recent AI server orders, providing investors with a clearer demand signal while highlighting dilution risk.
The large order book provides a strong demand signal for Super Micro, but the investment case now depends on execution, which includes securing components and converting orders into revenue at acceptable margins. Investors will be monitoring whether the capital raise accelerates fulfillment and translates the AI backlog into margin improvements that offset dilution.
Should you buy stock in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $442,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,230,114!*
Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 11, 2026.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hewlett Packard Enterprise. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stock Market Today, June 11: Super Micro Rises as $7 Billion Financing Shifts Focus to AI Order Fulfillment

Dell Technologies DELL is benefiting strongly from the rapid expansion of cloud and AI infrastructure as enterprises, cloud providers and sovereign customers invest heavily in modernizing their data centers. During its first-quarter fiscal 2027, the company highlighted that demand for servers, storage and AI infrastructure continues to exceed supply.
In the first quarter of fiscal 2027, the company reported record Infrastructure Solutions Group (“ISG”) revenues of $29 billion, driven by strong demand for both AI and traditional servers. Dell booked $24.4 billion in AI orders during the quarter and ended with a record AI backlog of $51.3 billion. The company’s AI solutions customer base has grown beyond 5,000, including enterprises, neocloud providers and sovereign organizations. The Zacks Consensus Estimate projects revenues to increase 47.35% year over year in fiscal 2027.
Storage is another major beneficiary. Customers deploying AI and cloud workloads require large amounts of high-performance storage to manage and analyze data. Dell reported strong demand for its PowerStore, PowerMax, PowerScale and ObjectScale offerings, with unstructured data storage showing particularly strong momentum.
Dell expects strong growth as companies continue investing in AI, cloud and digital transformation. The company projects about $60 billion in AI server revenues this year, with demand still exceeding supply. Dell also sees agentic AI boosting demand for servers, storage and PCs, creating new growth opportunities across its business. With a growing AI backlog, strong enterprise demand and a broad infrastructure portfolio, Dell is well positioned to benefit from the next phase of cloud and AI infrastructure expansion in 2026 and beyond.
Dell’s AI Infrastructure Push Faces Tough Rivals
Dell Technologies is a major player in the AI infrastructure market but faces stiff competition from Super Micro Computer SMCI and Hewlett Packard Enterprise HPE.
Super Micro Computer is strengthening its AI infrastructure business through its Data Center Building Block Solutions (“DCBBS”), which provides end-to-end data center solutions, including liquid cooling, networking, power systems, software and services. The company highlighted its industry-leading time-to-online capabilities, helping customers deploy AI factories faster and more efficiently. Strong engineering expertise, design-for-manufacturing initiatives and factory automation are improving production speed, quality and margins. Super Micro Computer continues to expand its partnerships with NVIDIA, AMD, Intel and Arm, while increasing manufacturing capacity globally. Management believes DCBBS, software and services will become significant profit drivers as demand for AI infrastructure grows.
HPE is benefiting from strong AI and networking demand, with AI systems orders reaching $1.8 billion and expanding into orchestration, data movement and agentic AI workloads. A record backlog and a pipeline multiple times larger than the backlog support growth visibility. HPE is benefiting from rising demand for high-memory servers and AI inference, while the Juniper integration is driving networking momentum and cross-selling opportunities. Management expects durable demand, sustained AI adoption and continued growth across its Cloud & AI and Networking businesses through fiscal 2027.
DELL’s Share Price Performance, Valuation & Estimates
Shares of Dell have gained 193.8% year to date, outperforming the broader Zacks Computer & Technology sector and the Zacks Computer - Micro Computers industry’s growth of 15.8% and 11%, respectively.
DELL’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, its forward price-to-earnings ratio of 24.6X is significantly below the industry’s average of 29.93X.
DELL’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $18.66 per share, increasing 45.44% over the past 30 days. This suggests 81.17% year-over-year growth.
Dell Technologies Inc. Price and Consensus
DELL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

DELL Benefits From Cloud Infrastructure Expansion: What Lies Ahead?

Super Micro Computer SMCI shares have lost 32.4% in a year, underperforming the Zacks Computer- Storage Devices industry and the Zacks Computer and Technology sector’s return of 546.7% and 42.8%, respectively.
SMCI 12-Month Performance Chart
Image Source: Zacks Investment Research
This decline in stock price has made SMCI shares trade at a discount. SMCI shares trade at a price-to-sales (P/S) multiple of 0.35x compared to the broader industry’s 4.07x.
SMCI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Given these dynamics, let's examine the fundamentals of SMCI stock and see if it’s the right time to invest in this stock.
SMCI Rides on AI-Datacenter Momentum
Super Micro Computer is benefiting from a rapid surge in global AI infrastructure spending, driven by hyperscalers, NeoCloud providers, sovereign AI initiatives, AI factories and enterprise customers as they deploy next-generation AI workloads. SMCI has rapidly transformed itself from a traditional server manufacturer into a full-stack AI infrastructure and end-to-end data center solutions provider through its expanding Data Center Building Block Solutions portfolio.
SMCI’s backlog and order activity remain at record levels, supported by industry-wide AI infrastructure demand and ongoing shortages of GPUs, CPUs and memory. The company continues to benefit from close relationships with major semiconductor vendors, especially NVIDIA NVDA, AMD, Intel and Arm. Management stated that SMCI is currently shipping high-volume NVIDIA GB300 NVL72, HGX B300, RTX6000Pro and AMD MI350/355 rack-scale systems worldwide while simultaneously preparing for next-generation Vera Rubin AI systems, AMD Helios platforms and Arm-based AGI infrastructure.
SMCI is on track to scale rack production capacity to more than 6,000 AI racks per month by the end of fiscal 2026, including 3,000 direct liquid cooling racks monthly. SMCI is already shipping 150kW AI racks in volume and preparing 250kW and 500kW rack solutions to support future high-density AI training and inference workloads. Management also highlighted that the company’s global AI infrastructure facilities now support roughly 75 megawatts of capacity worldwide.
SMCI is aggressively scaling its manufacturing footprint to support rising AI infrastructure demand globally. The company is expanding facilities across Silicon Valley, Taiwan, Malaysia, the Netherlands, Texas/Mexico and the Middle East. SMCI’s massive expansion plans and demand for its infrastructure support create a need for its data center management and orchestration suite, including SuperCloud Composer and SuperCloud Director. Revenues from the software product line increased to $46 million in the third quarter of fiscal 2026. The company was only able to generate less than $10 million each quarter earlier.
Super Micro Computer Grapples With Near-Term Headwinds
Despite SMCI’s extraordinary growth trajectory, competitive pressure, working capital strain and regulatory risks remain key concerns for the company. SMCI remains highly dependent on AI infrastructure spending cycles, with AI GPU-related platforms accounting for more than 80% of quarterly revenues.
Such concentration exposes the company to fluctuations in AI capital expenditure trends, GPU supply dynamics and hyperscaler deployment cycles. Furthermore, SMCI continues to rely heavily on a small number of large customers. During the third quarter, one large data center customer represented 27% of total revenues while another enterprise customer accounted for 10%.
The company’s rapid expansion has also created significant working capital and balance sheet strain. Inventory surged to $11.1 billion at the end of the third quarter from $10.6 billion in the previous quarter and $4.68 billion at fiscal 2025-end as SMCI aggressively built inventory to support AI rack demand and mitigate supply chain constraints. SMCI’s days inventory outstanding increased sharply to 106 days from 63 days sequentially.
SMCI also reported a substantial negative operating cash flow of $6.6 billion during the third quarter of fiscal 2026 and negative free cash flow of $6.7 billion due to elevated inventory levels, reductions in accounts payable and growing receivables balances. Super Micro Computer’s gross margin volatility remains another major concern. In the third quarter of fiscal 2026, the company reported a non-GAAP gross margin of 10.1%, up from 6.4% in the previous quarter and 9.7% a year ago.
Furthermore, the competition in the AI infrastructure market is intensifying rapidly. Hewlett Packard Enterprise HPE and Dell Technologies DELL continue investing aggressively in AI infrastructure platforms and integrated rack-scale deployments. Dell’s AI Factory initiative with NVIDIA and Hewlett Packard Enterprise’s ProLiant, Synergy and liquid cooling offerings remain an overhang on SMCI. These factors have led SMCI’s bottom line to be volatile throughout 2025 and 2026. The Zacks Consensus Estimate for SMCI’s fiscal 2026 earnings per share has been pegged at $2.56, indicating a year-over-year increase of 24%. The estimates have remained unchanged over the past 30 days.
Image Source: Zacks Investment Research
Conclusion: Hold SMCI Stock Now
While Super Micro Computer remains well-positioned to benefit from the AI infrastructure boom through its strong execution and expanding rack-scale portfolio, elevated inventory levels, partnership with NVIDIA, negative free cash flow and increasing customer concentration warrant caution. At the same time, intensifying competition from Dell Technologies and Hewlett Packard Enterprise in AI systems and integrated data center solutions could pressure future growth and margins. Despite its attractive valuation, investors may be better served by holding the stock until execution and cash flow trends improve. Given these dynamics, we suggest investors retain this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SMCI Plunges 32% in a Year: Time to Hold or Fold the Stock?

Super Micro Computer (NASDAQ:SMCI), AI server and storage solutions provider, closed Wednesday at $29.27, down 27.98%. The stock sold off after the company detailed plans for about $7 billion in equity and equity-linked financing to fund a $39 billion backlog of AI server orders. Investors are now considering how dilution and execution risks balance demand for its AI infrastructure.
Trading volume reached 184 million shares, coming in about 316% above its three-month average of 44.2 million shares. Super Micro Computer IPO'd in 2007 and has grown 3,241% since going public.
How the markets moved today
S&P 500 (SNPINDEX:^GSPC) fell 1.62% on Wednesday to 7,267, while the Nasdaq Composite (NASDAQINDEX:^IXIC) slid 1.98% to 25,169.50. Within computer hardware, industry peers Dell Technologies (NYSE:DELL) closed at $369.83 (-3.13%) and Hewlett Packard Enterprise (NYSE:HPE) finished at $45.49 (-5.76%) as AI server sentiment weakened.
What this means for investors
Supermicro’s news today can be viewed as both good and bad. A $7 billion capital raise involving stock offerings and equity-linked financing will dilute shareholders, and investors sold the stock off on that news alone.
Yet the company said the money will be used partially to fund component purchases to satisfy $39 billion in recently received AI server orders. So underlying demand is clearly strong. But higher component prices could also hit profit margins as Supermicro works to fill those orders.
One solution for investors is to own peer server solution providers like Dell and Hewlett Packard Enterprise to participate in the strong demand environment with less financial risk. That helps explain the outsize drop in Supermicro stock today.
Should you buy stock in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,038!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,277,804!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 10, 2026.
Howard Smith has positions in Dell Technologies and has the following options: short August 2026 $250 calls on Dell Technologies. The Motley Fool has positions in and recommends Hewlett Packard Enterprise. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.