AI server stocks are no longer just riding on hype.
Three well-known artificial intelligence (AI) companies have reported earnings reports over the past month—Super Micro Computer. NASDAQ: SMCIDell Technologies NYSE: DELLand Hewlett Packard Enterprise NYSE: HPE-and the market reaction was not muted, with each company seeing a big increase after the release of its latest reports.
The meeting between these three names shows that Wall Street is still willing to chase the AI infrastructure trade, but the best may be for companies that turn the demand for AI into a measurable revenue driver.
Super Micro Comptuer Rallies As Margins Improve Despite Revenue Missing
The Super Micro Computer Today
The Super Micro Computer
- 52 week interval
- $19.48
▼
$62.36
- The P/E ratio
- 22.05
- Target Value
- $39.00
Shares of Supermicro rose more than 24.5% after it reported Q3 2026 earnings on May 5, despite missing a long period of sales.
Revenue came in at $10.24 billion, up more than 123% year-over-year (YOY). However, this was well below Supermicro's estimates of at least $12.3 billion. Meanwhile, its adjusted earnings per share (EPS) of 84 cents beat expectations of 63 cents.
Overall, investors seem to be very positive on SMCI's improved bottom line.
The company continued to show a trade-off between revenue growth and its very low adjusted gross profit. While sales fell slightly short of expectations, adjusted gross margin improved 370 basis points to 10.1%. This improvement was nice to see, but whether it will stick consistently over time is still questionable.
In late May and early June, SMCI rode the wave of other AI server stocks posting very strong results. Shares of SMCI rose nearly 68% in May, marking the stock's best monthly return since February 2024, when shares rose more than 63%. Despite this recent rally, SMCI shares remain down more than 50% from their all-time high in early 2024.
Analysts have given SMCI a consensus rating of hold and a $39 target price, implying a potential downside of 17%.
Super Micro Computer, Inc. Price Chart (SMCI) for Friday, June, 5, 2026
Dell Breaks Down Estimates As AI Sales, Orders, and Backlog Spike
Dell Technologies Today
Dell Technologies
- 52 week interval
- $109.17
▼
$469.47
- Dividend Yield
- 0.63%
- The P/E ratio
- 31.72
- Target Value
- $475.76
Dell's Q1 2027 earnings report came on May 28 and blew estimates out of the water.
Analysts had expected strong growth of around 53%, but Dell's results cleared that high bar by a wide margin.
Revenue came in at $43.84 billion, up 88% YOY and beating estimates by a whopping $8.1 billion, as analysts had predicted only 53% YOY growth. Adjusted EPS grew over 214% YOY to $4.86, well above estimates of $2.96.
Later, Dell gained about 33% after the release of its report, for a full May gain of 101%.
AI servers continued to be a strong demand driver, with Dell reporting sales of $16.1 billion, up more than 700% YOY. AI server orders reached $24.4 billion, with a strong book-to-bill ratio of 1.5x, which means demand is strong. The company ended the quarter with a $51.3 billion AI server backlog and expects to generate $60 billion in AI server revenue for its full fiscal year.
Dell issued a massive $27 billion increase in its full-year revenue guidance, as well as a surprise $5 increase in its adjusted EPS guidance. It now sees these figures up to $167 billion and $17.90 billion, representing expected YOY growth of 47% and 74%, respectively. This would mark Dell's highest growth rate since it returned to the public markets in December 2018.
The analyst consensus price target for Dell now sits at $475.76, indicating about a 13% upside potential.
Dell Technologies Inc. price chart. (DELL) for Friday, June 5, 2026
Hewlett Packard Enterprise Booms As Financial Plan Goes 2 Years Ahead Of Schedule
Hewlett Packard Enterprise Today
Hewlett Packard Enterprise
- 52 week interval
- $17.49
▼
$64.25
- Dividend Yield
- 1.15%
- The P/E ratio
- 46.27
- Target Value
- $64.65
While Hewlett Packard Enterprise (HPE) didn't release its Q2 2026 earnings report until June 1, the stock rebounded in May—along with other server stocks—up just under 50%.
HPE posted big beats on both its top and bottom lines. Revenue came in at $10.68 billion, equivalent to 40% YOY growth, beating estimates by nearly $900 million. Analysts had predicted a growth of only 28% YOY. Adjusted EPS rose 108% YOY to 79 cents, beating estimates by 54 cents.
HPE booked $1.8 billion in new AI systems orders, bringing cumulative AI systems bookings to $16.4 billion, and entered Q3 $5.9 billion behind.
Net sales in its cloud and AI segment rose 23% YOY. Based on its strong results, HPE significantly raised its guidance for the full year, now expecting adjusted EPS of $3.40 in the mid-range. This marks a full increase of $1 compared to previous estimates of $2.40.
The company is now two years ahead of schedule to reach its financial goals, as HPE was previously expected to reach adjusted EPS of $3.40 by 2028. It's no surprise that HPE is up 19.5% after its earnings report.
After these results and the subsequent target revisions, Wall Street analysts are expressing very high potential for HPE. The MarketBeat consensus price is sitting near $65, which means it's up nearly 20%, as the price target rose sharply after the company's earnings report. The revised target estimate remains near $69 per share, which represents an upside of more than 20%.
Hewlett Packard Enterprise Company (HPE) price chart for Friday, June 5, 2026
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