Dell's AI Server Boom Drives Record Q2 Earnings

Penguin Solutions said it expects fiscal 2027 net sales of approximately $2.43 billion at the midpoint, roughly 40% growth plus or minus 10 percentage points, with diluted earnings per share of approximately $4.45 plus or minus $0.70. The outlook, raised from a preliminary view of about 30% growth given last quarter, was supported by record backlog, bookings growth, continued integrated memory strength and accelerating demand for its AI infrastructure business, Interim CFO Aaron Johnson said on the company's Q4 fiscal 2026 earnings call. For the fourth quarter, net sales were $567 million, up 68% year over year, and EPS was $1, up 133%, with gross margin of 28.8% and operating margin of 15.8%. Integrated Memory posted record quarterly net sales of $341 million, up 158% year over year and 24% sequentially, while Advanced Computing net sales were $154 million; for the full year, net sales were $1.73 billion, up 26%, and diluted EPS rose 51% to $2.87. CEO Kash Shaikh said the company added 6 new AI infrastructure customers in the quarter, including 4 neoclouds, and was selected to deploy and operate a 36,000 GPU AI factory in Norway, and he noted that Stephen Cumming has joined as Chief Financial Officer. The company completed a significantly oversubscribed $750 million 0% convertible note offering due in 2031 and ended the quarter with cash and cash equivalents of $647 million.

Boost Run, Inc. has signed a five-year AI cloud services agreement with a leading sovereign AI company carrying a total contract value of $525.6 million, with acceptance of the initial infrastructure expected to begin in early Q2 2027. Under the deal, Boost Run will deliver compute capacity powered by NVIDIA GB300 NVL72 GPUs, along with network storage and CPU node services. The contract brings Boost Run's total contract value to over $2.6 billion, a figure representing total revenue customers have committed to pay over the life of all agreements where the Company's signed contracts have upfront payments. Founder and Chief Executive Officer Andrew Karos said the agreement marks an important step in efficiently deploying the company's financing into contracted revenue and demonstrates the strength and diversification of both its customer base and its GPU fleet. Boost Run said it plans to continue converting its strong pipeline into signed contracts, deploying capacity against contracted demand as the AI compute market continues to expand.

NetApp announced in late September 2026 a collaboration with Super Micro Computer to deliver jointly validated AI infrastructure solutions that pair Supermicro's AI-optimized compute and liquid-cooled rack-scale systems with the NetApp Platform's unified data management and cyber resilience for large-scale AI factories, enterprises, neoclouds, and sovereign AI projects. The alliance reinforces Supermicro's push to be a full-stack AI factory supplier rather than just a server vendor, though its impact on near-term margin volatility and working capital risk looks incremental rather than game changing. Supermicro's investment narrative projects $91.7 billion in revenue and $3.4 billion in earnings by 2029, requiring 32.9% yearly revenue growth and about a $1.2 billion earnings increase from $2.2 billion today, with a fair value of $42.38 in line with its current price. Some of the lowest analysts already assumed revenue of about US$81.8 billion and earnings of roughly US$2.9 billion by 2029, arguing that export control and cash conversion risks could restrain value even if partnerships like NetApp and Vera Rubin AI factories scale. The launch of NVIDIA Vera Rubin NVL72 racks integrated with Supermicro's Data Center Building Block Solutions and direct liquid cooling is especially relevant, showing Supermicro turning cutting edge GPU platforms into turnkey AI factories at scale.

AM Intelligence has placed two further firm and binding orders for 20,000 NVIDIA Rubin GPUs, to be deployed as NVIDIA Vera Rubin NVL72 rack-scale systems in Malaysia and India with delivery scheduled for Q2 2027. The follow-on capacity totals roughly 70 megawatts and comes on top of AMI's inaugural commitment announced on August 25, 2026, for 9,000 NVIDIA Rubin GPUs at its first AI Factory in Hyderabad. Taken together, the three orders bring AMI's committed frontier compute to approximately 29,000 Rubin GPUs and close to 100 MW of capacity, establishing AMI among the earliest and largest committed buyers of Rubin GPUs outside of North America. Those three orders represent the first committed tranche within AMI's roughly 400 MW global pipeline of Compute-as-a-Service capacity across India, the United States, Europe and Malaysia, with the balance under development for delivery in subsequent phases in 2027 and early 2028. AMI plans to bring an additional 300 MWs of capacity to market in the next 15 months, involving capital expenditure of more than $20+ billion in addition to the $6 billion already committed for the initial $100 MW, advancing its stated intention to bring 1 GW of Compute-as-a-Service capacity to global AI workloads within a broader programme of 5 GW of powered AI data centres across India, the United States and Europe.

Foxconn, the world's largest contract electronics maker, reported a 47% year-on-year surge in third-quarter revenue, beating estimates on strong AI demand. Revenue for the July-September quarter was T$3.03T, or $95.4B, well above an LSEG SmartEstimate of T$2.83 trillion. The Apple and Nvidia supplier, formally known as Hon Hai Precision, reported September revenue of $1.16T, up 38.42% year-on-year. The company said AI-related operations are expected to continue growing in the fourth quarter, and together with the traditional peak season for electronics products in the second half, this should support overall performance in line with current market expectations. Foxconn will report full third-quarter earnings on November 12.

Cal-Comp Electronics (Thailand) Public Company Limited, or CCET, has announced a five-year business strategy, building on its EMS business toward higher-value technology products. Managing Director Khongsin Chokvicharoen said the company will expand into new businesses in AI servers, CSP, LVDC and HVDC, alongside developing automation and AI to elevate itself into a smart factory. This year the company is accelerating the setup of an AI server production line, which is expected to begin operations before the end of the third quarter of 2026. Meanwhile, CSP-related products are in the process of setting up production lines and are preparing to start manufacturing in Thailand within the second half of 2026. On the high-end power supply side, the company has already begun producing electric vehicle chargers, while CRPS and LVDC products are in trial production and are expected to begin commercial production in the second half of this year. HVDC, developed jointly with affiliated companies, is targeted to start production within 2027. For its long-term plans, the company has a quantum computing project, having already developed and produced a working prototype, and is conducting joint research with ITRI in Taiwan as well as leading universities in Taiwan. It also has an LEO satellite project through a long-term partnership with a leading satellite service provider from Taiwan, which is currently in the development and business model study stage.