Dell CEO Rejects AI Bubble Fears, Says Chip Supply Could Stay Tight Through 2030

He expects the supply-demand imbalance to potentially persist through 2030 because new semiconductor fabrication capacity takes years to build.

• Dell said rental prices for Nvidia H100 chips reached a one-year high about a week ago, citing it as evidence of strong demand.
• He added that public opposition to data centers has not materially changed the company’s 2027 outlook.
• Dell said the company has a large project backlog and has not seen significant delays.

Dell Technologies (DELL) CEO Michael Dell on Tuesday dismissed concerns about an artificial intelligence bubble, pointing to a shortage of computing capacity and rising rental prices for Nvidia’s H100 chips as signs of sustained demand.

“I don't think there's enough supply for it to be a bubble,” Dell said in an interview with CNBC. He said the company keeps a tab on whether customers put the equipment they order to use and have the capital and data center infrastructure needed to support it. Dell added that the company does not accept every order, but prioritizes customers it believes will deploy the systems and use them to serve their own customers.

Dell also pointed to rental prices for Nvidia’s (NVDA) H100 chips, which he said reached a one-year high about a week ago, as evidence of strong demand for computing power.

“Why? Because the demand for compute is so strong,” Dell said. He added that customers are seeing significant returns from using computing resources to generate intelligence.

DELL stock fell over 1% in midday trade on Tuesday amid weakness in the broader market. 

AI Supply Crunch Could Worsen In 2027

Dell said the gap between demand and supply could widen next year.  He explained that building a new semiconductor fabrication plant takes about four years, with new capacity not expected to come online until 2029 or 2030. Meanwhile, AI models and agents are advancing faster than many had anticipated, driving demand for computing infrastructure.

“So I do think it will get worse next year in terms of demand and supply,” he said. “Maybe it's a four-year problem because there's just not enough supply.”

Dell said he expects that imbalance to continue through 2030, while noting that forecasts become harder the further out they extend.

Dell Sees No Major Data Center Moratorium Threat To 2027 Outlook

Dell said growing public scrutiny of data centers and their energy and water use has not materially changed the company’s expectations for next year. “I don't see it as a big impediment to 2027,” he stated.

Dell said the company has a large backlog of projects and has not seen significant delays. He also pointed to efforts to improve system efficiency, reduce energy consumption and develop modular data centers with potentially smaller environmental footprints.

Dell Says AI Needs Safeguards, But US Must Stay Ahead

Dell said AI companies, governments and organizations deploying the technology all have a role in managing potential risks. He called for safeguards around AI models and agents, including limits on their permissions, monitoring and human oversight when harmful outcomes are possible.

“I think there's a role for government to play there,” Dell said, adding that companies using AI tools also need to establish boundaries for what those systems can do.

On the other hand, Dell also stated that halting AI development or data center construction would hurt the U.S. economy and benefit competing countries.

“I think it's very important that we stay ahead,” he said. “I think we can find a path here where we have safe systems that are also incredibly powerful.”

How Does Retail Feel About DELL Stock?

On Stocktwits, retail sentiment DELL stock dipped to ‘bearish’ from ‘neutral’ territory over the past day. However, some traders remained optimistic about its outlook.

One user on the platform suggested that the stock could recover to $580.

View this Stocktwits post

DELL stock has gained nearly 350% this year and around 270% in the last 12 months. 

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