Dell's earnings were a blowout with beats across metrics and raised guidance; strong AI server growth supports valuation expansion.

Okay, let's talk Dell. As we went into its earnings, expectations were high, especially given the run that it's had, but look it uh knocked the ball out the park. Yeah, I mean the bar was high, but they beat every metric.

They raised guidance. You look at revenue overall grew 58% year-over-year. That beat by over $2 billion as far as revenue expectations. Adjusted EPS was up 203% year-over-year to $7.04. That was above the expected about $4.90.

You look at the infrastructure infrastructure solutions group. That was 38 .1 or 31.8 billion dollars. That was up 89% year-over-year. Their AI-optimized servers, $16.4 billion.

I kind of hit on this yesterday on our show. That was up up 100% year-over-year. A new record for AI orders of 60.9 billion dollars. $95 billion in AI backlog that continues to surge to the upside.

Then you look at some of their legacy parts of their business. Traditional servers and networking, that was up 122% year-over-year to 10 and a half billion dollars, and storage was up 26% year-over-year.

So, yeah, this was just a blowout earnings. They raised guidance.

Michael Dell, the you know, the chairman tweeted something out. He said, "Hey, I guess something good happens when you report EPS growth the rate that we have at this point, but it kind of fits into that narrative that we're seeing from uh Cerebrus and Nebius and some of these other AI service providers uh that they need Dell products.

And that's what is equating to these outsized moves.

And if you think that, hey, maybe valuation's getting stretched a little bit. Well, that E part of the PE, Diane, is exploding right now. So, probably growing into those higher multiples.