Dell Technologies benefits from increased AI spending, with server demand for AI fueling sales growth. Dell reports a strong third quarter, citing accelerated momentum and exceptional AI server demand. Micron may experience a memory super cycle due to Dell’s success and increasing hyperscaler and enterprise spending.

Dell’s server orders for AI surged 150% to $30 billion in fiscal 2026. CFO David Kennedy expects to ship $25 billion this fiscal year, with continued strength in the following year. Morgan Stanley predicts a further 50% increase in AI server shipments for Dell in fiscal 2027, reaching $37 billion.

The surge in demand for AI servers leads to potential memory price super cycle. Dell acknowledges rising memory prices due to capacity constraints and high demand. Micron is ramping up production to capitalize on the demand for high-bandwidth memory suited for AI applications.

Goldman Sachs raises Micron’s earnings per share outlook for 2026 and 2027. Micron’s CEO touts record revenue growth and strong data center sales. Analysts predict higher prices and demand, with Micron’s stock price target increasing. Morgan Stanley is bullish on Micron, projecting significant earnings per share growth.

Micron is expected to see EPS surpass $25 next year. Analysts predict continued upward revisions and historic DRAM pricing trends. The shortage in memory supply may lead to significant price increases. Wall Street remains optimistic about Micron’s future performance, with strong buy recommendations and price target upgrades.

Read more at Yahoo Finance: Dell earnings send blunt Micron message