Aug. 26 at 5:22 PM
$SMCI $DELL $HPE
The AI infrastructure cycle is still in its early innings, and these three companies are positioned to capture different parts of the same secular growth trend.
🔹 SMCI: Record demand, a backlog exceeding
$60B in new orders received during Q4 FY2026, and preliminary gross margins expanding to 15–17% show that the product mix is improving, not deteriorating. If execution continues, the market will eventually have to price in those stronger fundamentals.
🔹 DELL: Enterprise AI adoption is accelerating, and Dell remains one of the largest providers of AI server infrastructure to enterprises and hyperscalers. Its services, storage, and financing ecosystem make it a major beneficiary of long-term AI spending.
🔹 HPE: GreenLake, networking, and AI systems give HPE another strong runway as enterprises modernize data centers. Hybrid cloud plus AI infrastructure is becoming a multi-year investment cycle, not a one-time event.
The common theme? AI compute demand continues to outpace supply. Hyperscalers and enterprises are investing billions into next-generation infrastructure, and these companies are among the primary builders of that foundation.
Short-term volatility creates headlines. Long-term AI adoption creates shareholder value.
The winners won’t be determined by daily price action, they’ll be determined by who ships the infrastructure powering the AI revolution.
Bullish on AI. Bullish on infrastructure.
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