Episode summary
Dell Soars Most in Two Years on Outlook Fueled by AI Servers | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Scarlet Fu, Alexandra Semenova, John Tucker · Guests: Woo Jin Ho, Mandeep Singh, George Ferguson, Matt Henriksson
Summary
Dell shares jumped after the company lifted its AI server outlook, and Bloomberg Intelligence’s Woo Jin Ho argued that the bigger story is not just AI demand but better-than-expected strength across traditional servers and PCs too. He said Dell now sees a $60 billion AI server opportunity, up about 20% from $50 billion, and that the company is largely passing higher input costs through to customers rather than absorbing them in margins.
The conversation then turned to Anthropic’s $65 billion funding round at a $965 billion valuation. Mandeep Singh said the company’s annualized revenue has surged from a $9 billion run rate to $47 billion in five months, which he said helps explain the appetite for AI infrastructure spending. He argued that the market is rewarding AI narratives for now, even though the long-term winners are still uncertain, and said OpenAI likely wants to go public first to control the narrative.
George Ferguson discussed Blue Origin’s New Glenn rocket explosion and SpaceX’s valuation ambitions. He said Blue Origin still has work to do, while SpaceX’s lowered IPO target of at least $1.8 trillion still reflects a business with major launch scale and a broader AI and satellite story.
Matt Henriksson said Bloomberg Intelligence sees diabetes technology markets growing at double digits through 2030, led by Dexcom and Abbott in continuous glucose monitors and a broader insulin pump market that could benefit from better reimbursement, innovation, and AI-driven dosing algorithms.
Key takeaways
- Woo Jin Ho said Dell raised AI server guidance to $60 billion and is also seeing stronger-than-expected demand in traditional servers and PCs.
- Mandeep Singh said Anthropic’s revenue run rate has grown from $9 billion to $47 billion in five months, supporting the current AI spending frenzy.
- Mandeep Singh said the capital intensity of AI is pulling in financing from private equity firms like Apollo and Blackstone for chip and server deals.
- George Ferguson said SpaceX’s at least $1.8 trillion IPO target is still huge, but the company’s launch scale and satellite business could support a near-$2 trillion valuation.
- Matt Henriksson said CGM and insulin pump markets can each grow at double digits through 2030, with reimbursement the key adoption hurdle.
Notable quotes
“they raised their AI server guidance by about 20% um from $50 billion for this year to $60 billion”
“Gross margins are actually going up as as a matter of fact and they're passing through a lot of the uh the uh the input cost to customers”
“Anthropic started off the year at a $9 billion run rate. They put out a press release yesterday that they are at a $47 billion run rate”
“if you think about it we're only at the beginning phases of adoption of AI servers”
“SpaceX has been relatively successful in the launch business. Actually, more than relatively very successful launching 160 close to 170 rockets last year”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. All right, let's talk about something that's moving in the opposite direction, and that would be shares of Dell.
once Dell computer and of course now it's just Dell Inc. Uh because it sells so much more than just PCs. Wu Junho is our senior hardware and networking analyst and Wuen the story for Dell, the story for investors who want to buy Dell is all about its AI servers and on that front things are looking pretty good.
Hey Scarlet. Yeah, look things are looking fantastic for the AI servers. uh they raised their AI server guidance by about 20% um from $50 billion for this year to $60 billion evenly distributed uh by the way but you know there's a broader piece of the story a as well if we look at the guidance they raised their guidance by about 25 to 27 billion 10 billion of of the increase was AI servers but everything else it you know traditional servers PCs that's doing a lot better than expected and that's I think that's a the piece that uh some people are missing here.
Wendell now sees a $60 billion AI server opportunity. How sustainable is that level of growth?
Look, well, um the the way I have it modeled right now, you know, prior to results, it was uh uh 50 billion and then growing another 25 billion off of that. I mean 25 uh% off of that 50 billion. So what what what's happening uh is that we're seeing um these neo clouds as well as some of these sovereigns uh place multi-billion dollar AI server deals and if you think about it we're only at the beginning phases of adoption of AI servers and as more of these uh uh neoclouds and sovereigns start adding capacity probably on the front of the line providing those uh that equipment.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ai servers
- dell outlook
- anthropic funding
- space ipo and launch setbacks
- diabetes cgms and insulin pumps
Companies and tickers mentioned
- DELL
- DXCM
- ABT
- PODD
- MDT
- TNDM
- Dell Technologies
- Anthropic PBC
- SpaceX
- Blue Origin
- Dexcom
- Abbott Laboratories
- Insulet
- Medtronic (MiniMed)
- Beta Bionics
- Tandem Diabetes Care
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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