Several points to pay attention to during Dell's financial report call. To be honest, when sorting out the CPU shortage trend in mid April, Dell was overlooked. Unexpectedly, Dell is also one of the biggest beneficiaries of CPU shortage. Dell's conference call today, hurry up and make up for a class. What is the core logic behind the skyrocketing performance? 1. Dell COO: We are capturing market share in all three areas - if we include AI servers, that's four. All four major businesses: PC, servers, storage, and AI servers, are all vying for market share. We are winning. ” 1) AI servers: Revenue of $16.1 billion, a year-on-year surge of 757%. The new orders for the quarter amounted to $24.4 billion, while the backlog of orders reached a record high of $51.3 billion. 2) Traditional servers and networks: Revenue of $8.5 billion, up 92% year-on-year. Demand far exceeds supply. 3) Storage: Revenue of $4.3 billion, up 8% year-on-year. Dell's self-developed IP storage products have outperformed the market in demand growth for the fifth consecutive quarter. 4) PC (Client Solutions Division): Revenue of $14.6 billion, a year-on-year increase of 17%. Winning market share for the second consecutive quarter, with commercial PC revenue increasing by 18%, marking the seventh consecutive quarter of growth. 2. Dell has become an "integrator" of AI infrastructure. During the conference call, Dell repeatedly emphasized one word: Dell AI Factory. Chief Operating Officer Jeff Clarke introduced that two years ago, Dell and Nvidia jointly launched the "AI Factory" concept. Simply put, it means packaging the entire set of hardware required for AI training and inference - GPU servers, networks, and storage - into a quick deployable solution that can be directly used by enterprises. Customers don't just buy loose parts. Customers are not buying components, they are buying integrated solutions - solutions that can be quickly put into production, run on their own controlled infrastructure, meet the performance, security, and data infrastructure requirements of their workloads 3. Every step is experiencing a shortage of stock The demand continues to exceed the supply, and this demand is widespread - not only GPUs, but also CPUs, traditional servers, and PCs Where is the supply chain stuck? Clarke named four links: DRAM (memory), NAND (flash memory), CPU (processor), and hard disk. Among them, memory is the main bottleneck. He said, "Every memory is important, every processor is important, that's what we do every day GPUs do amazing work, but there is a lot of work that needs to be done around them - IO processing, branch management, state maintenance, these are serial, sequential tasks that are the work of the CPU. The CPU is running in a loop in every decision of the agent. Every call of AI, every decision, and every state management requires a 'management framework' to support it. This framework runs on the CPU. AI is' bursting 'traditional servers: an unexpected new market 4. Significantly increase annual guidance Annual revenue: 165 billion to 169 billion US dollars, with a median of 167 billion US dollars, an increase of about 27 billion US dollars compared to before, a year-on-year increase of about 50% AI server revenue: Annual target of $60 billion, approximately 2.4 times the same period last year Traditional servers: expected to grow by over 60% for the whole year Full year EPS (non GAAP): $17.90 (± 0.25), up approximately $5 from previous guidance, representing a year-on-year increase of approximately 75% To be honest, such a significant increase in guidance is also rare among US listed companies. That can only indicate that the performance is really explosive Our pipeline shows that demand is not slowing down, but accelerating and significantly exceeding supply, "said Jeff Clarke, COO of Dell Of course, it has a close relationship with Trump and interacts with Lao Huang a lot, which can drive the mood higher. But only super strong and significantly unexpected financial reports will cause a post market surge of nearly 40%