Dell Stock Outlook: How Nvidia, SpaceX and AI Spending Could Drive Growth

Dell Technologies could be one of the major beneficiaries of the next phase of the artificial intelligence boom, as massive AI infrastructure investments by Nvidia, SpaceX and other companies create fresh demand for data-centre servers and networking equipment.

The company has already emerged as a major player in the AI hardware buildout. Analysts now see developments involving Nvidia and SpaceX as potential additional catalysts for Dell, particularly as technology companies accelerate spending on computing capacity.

Why Nvidia's AI Plans Matter For Dell

Nvidia has unveiled a $500 billion financing platform involving third-party capital aimed at supporting AI infrastructure and major AI projects. The initiative could encourage more companies to invest in computing infrastructure, potentially creating additional demand for servers and related equipment.

That matters for Dell because the company supplies AI-optimised servers and data-centre systems that can be used with Nvidia's GPUs.

Mizuho analyst Vijay Rakesh believes even a portion of the infrastructure spending associated with Nvidia's initiative could translate into meaningful demand for Dell's products.

The broader trend is clear: AI development is moving beyond chips and software and increasingly requires huge investments in data centres, servers, networking, storage and electricity infrastructure.

SpaceX Could Be Another Big Opportunity

SpaceX is also planning a major expansion of its computing infrastructure.

The company has discussed deploying as much as 10 gigawatts of computing capacity by the end of 2027. While analysts consider that target ambitious, even a deployment of around seven gigawatts could represent a substantial infrastructure opportunity.

Nvidia is expected to be closely involved because SpaceX has indicated that it will use Nvidia chips exclusively for the planned computing infrastructure.

For Dell, the opportunity comes from its relationship with Nvidia and its role in supplying enterprise-grade servers and racks used for AI workloads.

Rakesh estimates that a seven-gigawatt SpaceX deployment could represent a more than $200 billion opportunity for Nvidia. That does not translate directly into $200 billion of revenue for Dell, but the scale illustrates how large the underlying AI infrastructure buildout could become.

Dell's AI Backlog Is Already Huge

Dell's potential opportunity is not purely based on future projects.

Before its latest earnings announcement, the company had reported a record $51.3 billion AI backlog, highlighting the strength of demand for its AI servers.

The bigger challenge has been supply.

Demand for AI infrastructure has grown so quickly that shortages of processors, memory and other components have constrained how quickly companies can deliver systems.

That has shifted the question for investors from whether companies will spend on AI infrastructure to whether manufacturers such as Dell can produce enough equipment to meet that demand.

Dell's Latest Earnings Show The AI Boom Is Real

Dell's latest quarterly results provided further evidence of the strength of AI-related demand.

The company reported $60.9 billion in AI server orders during the July quarter, while AI server revenue reached $16.4 billion, doubling from a year earlier.

Total quarterly revenue rose 58% to $47 billion, exceeding the $44.9 billion analysts had expected.
Adjusted earnings came in at $7.04 per share, compared with the $4.91 consensus estimate. That represented a 203% increase from the same period a year earlier.

Dell's AI backlog also jumped to $95 billion, compared with $51.3 billion in the previous quarter.
The company has raised its full-year fiscal 2027 outlook to $192 billion in revenue and $25.50 in adjusted earnings per share.

Dell Stock Has Already Had A Huge Run

Investors have already rewarded Dell for its growing exposure to AI infrastructure.

Before the latest earnings report, Dell shares had gained more than 260% in 2026, outperforming several other major AI beneficiaries, including Micron, Seagate and Western Digital.

That means expectations surrounding the company are already high.

The key question now is whether Dell can continue converting its enormous AI backlog into actual revenue while managing supply constraints and maintaining profitability.

AI Infrastructure Is Becoming The Bigger Story

The Dell story also shows how the AI investment cycle is expanding.

The first phase of the AI boom was dominated by demand for GPUs and other computing chips. The next phase requires a much broader ecosystem - including servers, networking equipment, storage, cooling systems and data centres.

Dell sits directly in the middle of that infrastructure chain.

Its traditional server and networking business is also benefiting from demand for computing capacity. In the latest quarter, revenue from that segment increased 122% to $10.5 billion. Storage revenue rose 26% to $4.9 billion, while its client solutions business, which includes PCs, grew 20% to $15 billion.

What Investors Should Watch

Dell's growth story now depends on several factors.

First is the pace of AI infrastructure spending by companies such as Nvidia, SpaceX and large cloud providers.

Second is whether Dell can overcome shortages of key components and convert its backlog into shipments.

Third is valuation. After such a sharp rise in the stock, investors may expect strong earnings growth to continue.

The company's latest results suggest that AI demand remains powerful. But for Dell shareholders, the next challenge will be determining how much of that future growth is already reflected in the stock price.

For now, Nvidia's expanding AI ecosystem, SpaceX's ambitious computing plans and Dell's growing AI backlog all point to a potentially powerful opportunity - but execution and valuation will remain critical for the stock's next move.

Disclaimer

The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.