Dell Technologies (NASDAQ: DELL) gained 5 % on Wednesday after Axelera AI revealed its Europa inference processor, slated for use in future Dell servers.
Axelera said it already serves more than 600 customers and has signed agreements worth tens of millions, with a potential sales pipeline exceeding $1.5 B. The partnership signals a fresh revenue stream beyond Dell’s traditional GPU‑centric server sales.
In the latest quarter, Dell shipped $16.4 B of AI systems, pushing its AI‑server backlog to $95 B. That backlog dwarfs the $8 B of conventional server orders reported in the same period, underscoring the shift toward AI‑centric infrastructure.
CFO David Kennedy told Citi’s 2026 Global TMT Conference that demand is widening from GPU to CPU‑based inference, storage and other enterprise workloads. He added that Dell’s hybrid portfolio positions it to capture the new wave of on‑prem and hybrid deployments.
Market participants now see Dell as a key player in the looming CPU‑inference boom, with analysts revising upside expectations. The company’s guidance remains neutral, but the 5 % uptick reflects a bullish stance on its AI expansion trajectory.