Dell Hikes Estimates for Next Four Years on Strong AI Demand | Bloomberg Intelligence

Dell told investors its AI server business is becoming a much bigger growth engine, and the hosts framed the update as a reset of Dell’s role in the AI buildout. A guest said Dell expects more of the infrastructure spend to shift toward on-premises deployments, arguing that 85% of enterprises will ultimately have some form of on-prem footprint. Dell also lifted its long-term outlook through 2030, with top-line growth expected at 7% to 9% and adjusted EPS growth around 15%, helped by stronger margins and a steadier core PC business.

AppLovin drew a different kind of attention after reports that the SEC is probing its data-collection practices. An analyst said the market is focused less on the announced probe than on a possible class action lawsuit, which could be more costly if it reaches trial. He noted that AppLovin generates about $2 billion in annual free cash flow, making a potential SEC fine less material, while the legal case could be the bigger financial risk.

Constellation Brands faced a softer consumer backdrop, with beer volume pressure tied to a slow beer market, tariffs, and changing drinking habits among younger consumers. An analyst said cannabis substitution, GLP-1 use, and moderation trends are chipping away at demand, even as the company pushes non-alcoholic and lower-calorie products and still has strong cash flow.

IBM’s latest AI partnership with Anthropic was presented as another sign that the company is leaning into an open ecosystem. A guest said IBM is using Anthropic’s Claude models to help enterprise customers add AI to legacy systems, while IBM’s consulting base gives Anthropic access to large corporate accounts.