{"id":243606,"date":"2026-05-29T10:00:00","date_gmt":"2026-05-29T14:00:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?p=243606"},"modified":"2026-05-29T10:55:18","modified_gmt":"2026-05-29T14:55:18","slug":"companies-buying-ai-servers-like-its-2020-toilet-paper-dell-exec-just-revealed-how-wild-the-rush-has-become","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/companies-buying-ai-servers-like-its-2020-toilet-paper-dell-exec-just-revealed-how-wild-the-rush-has-become\/","title":{"rendered":"Companies Buying AI Servers Like It&#8217;s 2020 Toilet Paper? Dell Exec Just Revealed How Wild The Rush Has Become"},"content":{"rendered":"\n<p>If&nbsp;<strong>Dell Technologies\u2019<\/strong>&nbsp;<a href=\"https:\/\/www.benzinga.com\/quote\/DELL\" target=\"_blank\" rel=\"noreferrer noopener\">(NYSE:<\/a><a href=\"https:\/\/www.benzinga.com\/quote\/DELL\" target=\"_blank\" rel=\"noreferrer noopener\">DELL<\/a>)&nbsp;latest earnings call is any indication, companies are rushing to lock in AI server capacity much like consumers rushed to stock up on toilet paper during the early days of the pandemic \u2014 securing supply now before shortages and rising prices hit later.<\/p>\n\n\n\n<p>Dell\u2019s Chief Operating Officer,<strong>&nbsp;Jeff Clarke<\/strong>, said Thursday demand came in stronger than expected across all business segments and geographies, with customers increasingly moving to \u201csecure supply across a broad range of IT needs.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-customers-are-planning-years-ahead\">Customers Are Planning Years Ahead<\/h2>\n\n\n\n<p>Clarke said some of its largest customers are already planning infrastructure needs three to five years ahead, a sign that securing future supply has become a bigger priority than locking in the best price.<\/p>\n\n\n\n<p>&#8220;I mean, clearly, the longer-term conversations we are having with customers are multiyear in nature\u2026 Think 3, 4, 5 years,&#8221; Clarke said on the call.<\/p>\n\n\n\n<p>According to Clarke, customers are increasingly&nbsp;<a href=\"https:\/\/www.benzinga.com\/markets\/tech\/26\/05\/52863936\/dell-executive-confident-amid-memory-crunch-as-ai-boom-strains-supply-this-is-what-we-do-never-run-out-of-parts\" target=\"_blank\" rel=\"noreferrer noopener\">prioritizing guaranteed access<\/a>&nbsp;to infrastructure over negotiating the lowest possible price, especially as AI workloads continue scaling rapidly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Changing Costs<\/h2>\n\n\n\n<p>Clarke also highlighted how volatile component pricing has complicated future cost projections, saying Dell is effectively repricing systems &#8220;every day&#8221; due to inflationary pressures across memory, CPUs and other critical hardware components.<\/p>\n\n\n\n<p>The part of the buying urgency due to uncertainty in the memory market, where rising DRAM and NAND costs, supply constraints and fluctuating pricing are prompting customers to secure infrastructure earlier than usual rather than risk higher costs or limited availability later.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Wall Street Didn\u2019t See This Coming<\/h2>\n\n\n\n<p>Dell stock rose 38.15% during Friday\u2019s premarket after closing 3.84% at $317.05 on Thursday.&nbsp;The company posted&nbsp;<a href=\"https:\/\/www.benzinga.com\/markets\/earnings\/26\/05\/52858151\/dell-stock-jumps-on-q1-earnings-beat-ai-demand-shows-no-signs-of-slowing\" target=\"_blank\" rel=\"noreferrer noopener\">first-quarter revenue&nbsp;<\/a>of $43.84 billion, surpassing analyst expectations of $35.45 billion. Adjusted earnings came in at $4.86 per share, well above Wall Street estimates of $2.94 per share.<\/p>\n\n\n\n<p>Dell\u2019s outlook also topped Wall Street expectations, as the company guided second-quarter revenue of $44 billion to $45 billion and adjusted earnings of $4.80 per share, compared to the analyst estimates of $34.99 billion and $2.98 per share, respectively.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally Posted May 29, 2026 &#8211; <a href=\"https:\/\/www.benzinga.com\/markets\/tech\/26\/05\/52865084\/companies-buying-ai-servers-like-its-2020-toilet-paper-dell-exec-just-revealed-how-wild-the-rush-has-become\">Companies Buying AI Servers Like It&#8217;s 2020 Toilet Paper? Dell Exec Just Revealed How Wild The Rush Has Become<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If\u00a0Dell Technologies\u2019\u00a0(NYSE:DELL)\u00a0latest earnings call is any indication, companies are rushing to lock in AI server capacity much like consumers rushed to stock up on toilet paper during the early days of the pandemic \u2014 securing supply now before shortages and rising prices hit later.<\/p>\n","protected":false},"author":1763,"featured_media":243618,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6,8,9,22,26,3],"tags":[],"contributors-categories":[13584],"class_list":{"0":"post-243606","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-north-america","8":"category-region","9":"category-securities","10":"category-stocks","11":"category-text-articles","12":"category-traders-insight","13":"contributors-categories-benzinga"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Companies Buying AI Servers Like It&#8217;s 2020 Toilet Paper? 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