DELL, HPE Stocks Draw Focus Ahead Of Earnings This Week — And SMCI Bulls Are Watching Closely

• Dell’s record AI-server backlog and HPE’s push into AI infrastructure have raised expectations for another strong quarter.
• Strong AI demand commentary from both companies could bolster the case for a rerating of SMCI, traders said.
• DELL stock is up 266% year to date, while HPE has gained 120%.

The AI server trade faces another big test this week as Dell Technologies and Hewlett Packard Enterprise report quarterly results, offering investors a fresh read on the AI infrastructure market — and potentially giving Super Micro Computer’s battered stock another catalyst.

Dell is set to report its fiscal second-quarter results Tuesday, with Wall Street expecting revenue to increase nearly 50% to $44.48 billion and adjusted earnings to more than double to $4.93 a share. 

Dell reported a record $51.3 billion AI-server backlog in the first quarter, with AI-optimized server revenue soaring 757% to $16.1 billion. Demand has continued to exceed supply, with memory shortages emerging as a key constraint, and the setup – now showing increasingly in the earnings – has powered a 266% rally in DELL stock this year.

Dell’s commentary on AI orders, backlog, margins and customer demand will be closely watched. UBS initiated coverage on the stock earlier this week with a ‘Hold’ rating and a $480 price target, citing "very strong" demand tailwinds and execution at scale with a speed advantage. In a separate note, Bank of America analysts said they expect Dell to raise its FY27 forecasts.

HPE reports fiscal third-quarter earnings Wednesday, with analysts expecting its revenue to surge 30% to $11.96 billion and adjusted EPS to more than double to $0.93, per Koyfin.  HPE has also been expanding its AI infrastructure footprint, most recently unveiling next-generation “Saudi Made” servers as it pushes further into sovereign AI and local data-center deployments. HPE stock has gained 120% year to date.
 

Traders Watching SMCI For Potential Upside

The setup is particularly interesting for SMCI, a competitor. Last month, the company forecast fiscal 2027 revenue well above Wall Street expectations, while Q4 gross margins came in stronger than expected at 17.5%.  

Yet the stock remains deeply discounted, trading well below its 52-week high, with lingering concerns around governance and credibility. Investor sentiment took another hit earlier this year after U.S. authorities indicted one of the company’s co-founders and several employees over alleged illegal server exports to China. 

While Super Micro has distanced itself from the allegations, the episode has weighed on the company’s reputation, with analysts warning that the controversy could create additional regulatory and business risks.

“Supermicro is sitting at the center of the AI infrastructure buildout with exposure to the biggest names in compute, $NVDA, $AMD, $MSFT, xAI, $CSCO and more,” a trader posted on Stocktwits.

“If SMCI continues executing and Wall Street eventually gives it a valuation closer to other AI infrastructure leaders, today’s price could look ridiculously cheap in hindsight.”

Another trader wrote: “Patience is a virtue, hold. Wait for this to really sink in for the bears, a lot will be second guessing their positions at the moment, they can say fraud now but really when they say it there's nothing to support it.”

“ALL of the items that really created that doubt in the financial reports have been REMEDIATED. Now it's time to relax for the bulls, we can sit here knowing that eventually it will go up just on institutions purchasing, retail really doesn't need to do too much anymore.”

On Stocktwits, retail sentiment was ‘bearish’ for SMCI and ‘bullish’ for HPE and DELL. DELL gained 0.5% in early premarket trading on Tuesday, while HPE rose 0.8%. SMCI was down 0.2%.

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