In This Article:
AI server demand maintains momentum as PC remains sluggish: Wells Fargo. With quarterly earnings season kicking off, Wells Fargo analysts led by Aaron Rakers highlighted Dell Technologies (NYSE:DELL) as a top pick, driven by accelerating AI server orders even as consumer PC sales languish.
The bank expects Dell to reiterate its FY26 guidance and zero in on a path to more than $10 per share in EPS, backed by over $15 billion in projected AI-server revenue next fiscal year. Nvidia's (NASDAQ:NVDA) GB200 NVL ramp from Hopper to Blackwell should further bolster Dell's data-center mix, as organizations shift capital away from muted PC upgrades toward high-performance AI infrastructure.
Consensus forecasts call for adjusted EPS of $1.68 on $23.17 billion in revenue when Dell reports Q1 FY26 results after the close on May 29.
By contrast, Hewlett Packard's (NYSE:HPQ) consumer-facing PC segment remains under pressure, earning HP Inc. an Underweight rating and $35 price target, while Hewlett Packard Enterprise benefits from server tailwinds and holds an Equal-weight rating with a $22 target ahead of its June 3 report and a July 9 bench trial on the Juniper acquisition.
Pure Storage (NYSE:PSTG) also steps into the spotlight on May 28, fresh off a deal to serve as Meta Platforms' (NASDAQ:META) preferred storage partnera win that underscores how hyperscalers are reshaping vendor landscapes.
Why It Matters: As capex shifts toward AI workloads, hardware leaders with robust server portfolios and close ties to Nvidia stand to outperform peers tethered to the soft PC market.
Investors will be watching May's earnings cadenceHP on May 28, Dell on May 29 and HPE on June 3to gauge whether AI-driven demand can sustain momentum and translate into outsized financial results.
This article first appeared on GuruFocus.