Dell reports record AI backlogs and raised revenue targets, yet analysts remain divided on whether hardware fungibility can offset a potential contraction in aggregate hyperscaler capital expenditure.
Dell raised FY27 revenue guidance to $192 billion with a record $95 billion AI backlog, though free cash flow fell 47%.
Broadcom guided fiscal 2027 AI revenue to approximately $115 billion and fiscal 2028 to roughly $230 billion, but the stock has been weak recently.
HPE is down 4.82% for the month and was hit by an Evercore downgrade to In Line.
GE is mentioned as one of the AI infrastructure names Cramer exempts from the slowdown narrative.
Vertiv is mentioned as another AI infrastructure company tied to the buildout narrative.
Dell Technologies has lifted its fiscal 2027 revenue guidance to $192 billion, bolstered by a record $95 billion AI backlog. While the company argues that AI server demand remains robust due to the fungibility of hardware, critics point to a 47% decline in free cash flow and recent share price weakness in peers like Broadcom and HPE as evidence of potential market cooling.
The argument suggests that because AI server components are standardized, if one hyperscaler cancels an order, another buyer will immediately fill the slot, preventing inventory from sitting idle.