Blast-Off for Dell & ARM; Palantir Bubbles

This great chart reflects super-exciting fundamentals. What a story!

This quarter was driven by key highlights, including the expansion of Arm’s product strategy and our continued momentum in Cloud AI. As AI is moving from human-based queries to continuous agent-driven workloads, this shift is expanding the role of the CPU*. These Agentic workloads require CPUs to coordinate tasks, move data, manage memory, enforce security and orchestrate workaround accelerators.

*A CPU (Central Processing Unit) is the primary “brain” of a computer or electronic device. It retrieves, decodes, and executes instructions, performing essential calculations, logic operations, and data management. It acts as the core engine that coordinates all other hardware components and software programs.

As Agentic AI scales, data centers will require more than 4x today’s CPU capacity, creating a data center CPU market opportunity of more than $100 billion by 2030. The Arm AGI CPU, which we launched at our Arm Everywhere event last quarter and is purpose-built for Agentic AI addresses this need directly. Our first production silicon product for the data center will deliver more than 2x the performance per rack compared with x86 platforms with the potential to reduce AI data center capital expenditure by up to $10 billion per gigawatt. Meta is our lead partner and co-developer and is working with us on a multi-generation road map to support personal super intelligence for more than 3 billion users.

The Arm AGI CPU expands how customers can work with Arm. Customers can now deploy Arm compute through IP, compute subsystems or silicon. One compute platform, one software ecosystem. That is unique to Arm. IP and CSS remain the foundation of our royalty growth. Silicon extends the Arm platform and gives customers another way to build AI infrastructure. Ecosystem support has been significant. More than 50 leading companies are supporting the expansion of the ARM compute platform into silicon, including the very biggest names in the industry. Customer response to the Arm AGI CPU has been very strong. We now have more than $2 billion of customer demand across fiscal 2027 and fiscal 2028.

This is more than double what we stated at launch. We are on track towards our forecast of $15 billion as this business as stated at our Arm Everywhere event. And soon, the data center will be Arm’s largest business. The direction is clear. Customers want Arm at the center of the AI data center. Customers need Arm where Agentic applications run and they need Arm where accelerators scale. For example, SAP will move their core database and business application workloads to Arm, starting with AWS Graviton and expanding to the Arm AGI CPU. This represents a significant strategic shift. Cloudflare will deploy Arm across its global network to support traffic management, security and AI inference closer to users.

We have also secured design wins with key network infrastructure providers, including F5 and SK Telecom. AI infrastructure needs CPUs and accelerators working together efficiently at scale. NVIDIA, Amazon and Google are already using Arm-based CPUs as head nodes along the accelerator-based systems. Cerebras, OpenAI, Rebellions and Positron are doing the same with the Arm AGI CPU. This momentum builds on our existing scale in the cloud. That scale is increasingly driven by Arm Neoverse CSS and Arm-based compute, which now represents about 50% market share with top hyperscalers. Recent announcements from key customers show that AI infrastructure is being built around Arm-based custom silicon.

Our opportunity does not stop at the data center. AI is moving to every device and every physical system. Phones, PCs, vehicles, factories, robots, cameras, sensors and connected devices all need efficient, secure compute with software that scales. These AI workloads will all run on Arm. With over 350 billion chips shipped and over 22 million developers, the Arm compute platform is the most comprehensive in history, and we are positioned to bring AI from cloud infrastructure to the Edge and to the physical world through a common compute platform and ecosystem. We enter fiscal 2027 with record results, strong customer demand and a larger opportunity ahead of us.

The key here is the combination of an explosive chart breakout with a spectacular AI-based story. ARM is a strong buy. I have been waiting a long time for ARM to take off, but finally it is happening.

I have drawn the lines on this chart to reflect my belief that Dell shares are making a breakout from a massive pattern.

They have indeed had a great start to fiscal 2027.

What a great start to FY 2027. The first quarter underscored the strength and agility of our operating model and the advantage of our broad portfolio. Our team executed very well in a challenging environment delivering record revenue and EPS. Revenue was $43.8 billion, up 88% and earnings per share was $4.86 up 214%. Demand was stronger than we anticipated. Across all lines of business and geographies with customers moving to secure supply across a broad range of IT needs. This drove meaningful scale, record cash generation, and continued strong capital returns for shareholders.

Our strong performance reflects not only demand in the quarter, but also the pace of innovation we continue to bring to market across the full stack of PCs, compute and storage. We have had a strong run of announcements since our last call. At GTC, we marked the 2-year anniversary of the Dell AI factory with NVIDIA and extended our leadership in accelerated computing. We introduced new infrastructure across NVIDIA’s Vera Rubin Rack Scale platform, the Rubin GPU architecture, and RTX GPUs. With form factors that scale the AI factory from the largest clusters in the world to the flexibility and efficiencies enterprises need. Also extended AI to the desktop with the new Dell Promax systems.

Supporting the GB10 and introducing the industry’s first OEM desktop with GB300. At Dell Technologies World, we built on that momentum with new desk side server storage and data management innovations. Our desk-side agentic AI solutions help enterprises run production ready AI locally, supporting use cases like coding, research, and secure private assistance while keeping sensitive data and IP on prem. Building on strong demand for our integrated rack scale systems where Dell is the top rack scale infrastructure provider, we expanded the portfolio with the launch of Dell Power Rack. A turnkey factory integrated solution designed to accelerate deployment across compute, networking, and storage.

In servers, our 18th generation of PowerEdge server portfolio expands support for AI, HPC, and enterprise workloads. With new air cooled systems that improve compute density and efficiency. On the data side, advancements in the Dell AI data platform help customers make enterprise data ready at scale with stronger orchestration, faster indexing of unstructured data, and improved analytics performance. We further strengthened the storage foundation for modern and AI workloads, PowerStore Elite delivers up to 3x performance and densities of prior generations with an industry leading 6-to-1 data reduction guarantee. Object scales adds higher density object storage and PowerFlex extends our exascale storage architecture with a unified approach across block, file, and object workloads.

We continue to expand the Dell AI factory ecosystem with partners including NVIDIA, Google Cloud, OpenAI, SpaceX AI, ServiceNow, Palantir, Mistral, and CrowdStrike. For example, with Google Distributed Cloud, we are bringing Gemini models on premises with confidential compute so customers can run AI closer to the data while meeting data residency, privacy, and sovereignty requirements. The bottom line, Dell is expanding the AI factory from the data center to the desk side across compute, storage, networking, software, and services. We are giving customers choice helping them protect their data, and enabling them to move from pilots to production faster. 

AI is creating an explosion of demand across the technology industry, and, as many CEOs keep pointing out, we ain’t seen anything yet!

Palantir has incredible fundamentals. There are no buy signals on the chart, but it is bubbling nicely

Our revenue from U.S. commercial customers increased to $595 million in the first quarter, representing a growth rate of 133% from the same period the year before, while revenue from U.S. government customers, including our nation’s defense and intelligence agencies, reached $687 million last quarter, increasing 84% from the same period the prior year.

Palantir remains a terrific company which gets up the noses of ‘lefties’ everywhere. Rock on, guys, and keep ensuring that enemies of America bite the dust when it comes to a shoot-out.

On the foxhole side, Maven met its moment across real-world events in Q1. Usage has doubled in the past four months through March and is now up 4x over the past twelve months—across the services, the combatant commands, the Joint Staff, and the intelligence community. When the stakes are highest—when failure is measured in lives and readiness—this is where we are uniquely positioned. On the factory floor side, the demand on the defense industrial base to ramp production and sustainment has been so acute that we have surged resources from our commercial business. This is exactly what Warp Speed was built for—modernizing American manufacturing.

I sometimes think it is almost our patriotic duty to buy shares in Palantir. Unlike so many in government and on the left of British politics, I love America and applaud its role in defending the free world. Europe is never going to; what a bunch of drips they are.

Share Recommendations

ARM Holdings. ARM

Dell Technologies. DELL

Palantir Technologies. PLTR

Strategy – Buy The Best

This is the most exciting stock market I have ever seen. No wonder Bitcoin is becalmed. Cryptos can’t compete with the amazing action happening with US shares. Part of what I am seeing is these incredible chart breakouts. It is like this whole blast-off bull market is just beginning.

These skyrocketing shares are inevitably volatile, but that is part of the opportunity.

The greatest investment surge in history is driving this boom.

Global AI spending is on a parabolic trajectory. Worldwide AI spending is forecast to reach $2.5 trillion, while enterprise and Big Tech infrastructure investments alone—led by Amazon, Alphabet, Meta, and Microsoft—are expected to exceed $500 billion.

Global AI Spending (Billions USD)

The current trend represents a massive shift into a sustained capital expenditure (capex) phase, spanning infrastructure, cloud scaling, and model training.

Year	AI Spending / Global Capex	Description
2023	$168 Billion (Big Tech)	Initial generative AI boom.
2024	$256 Billion (Big Tech)	Rapid scaling of data centers.
2025	$427 Billion (Big Tech)	Infrastructure build-out reaches hyperscale.
2026	$562 Billion (Big Tech) / $2.5 Trillion (Global)	The global market surges.
2027	$637 Billion (Big Tech, Est.)	Projected continued compute hardware war.

This is completely random, but if you like 1950s cars, girls, and music, what a golden age that was, especially in the US, then check out 1950s Dream World on YouTube. It is a little piece of nostalgic magic, and boy, can AI sing.