DELL, HPE Stocks Lead S&P 500 Gains: Oracle’s $95B Capex Plan Lifts AI Stocks

Dell stock hit a record high above $567, while HPE shares hit multi-month highs.

• The rally followed Oracle’s decision to reiterate its fiscal 2027 capital expenditure guidance of $90 billion to $95 billion.
• According to TheFly, Oracle CFO Hilary Maxson said the spending will flow to vendors supplying AI racks, cooling systems and networking equipment, specifically naming Dell and HPE.
• Dell ended its second quarter with an $11.7 billion AI order backlog.

Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE) were the two biggest gainers in the S&P 500 in midday trade on Friday, with both hitting multi-month highs as the broader market rebounded from a four-session losing streak.

DELL stock jumped 11.5% to a record above $567, and was the S&P 500’s top gainer at the time of writing. HPE stock gained about 10.5%, crossing $61 to hit its highest level since June.

The gains followed Oracle’s (ORCL) decision to reiterate its fiscal 2027 capital expenditure guidance of $90 billion to $95 billion after Thursday’s market close. Oracle CFO Hilary Maxson told analysts that the spending will flow directly to vendors supplying AI racks, cooling systems, and networking equipment, according to TheFly, naming Dell and HPE among the beneficiaries. 

Oracle’s own stock, meanwhile, gave up most of its post-earnings gains. Shares were up just 0.3% in midday trade after rising as much as 10.3% earlier in the session.

DELL and ORCL were both among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around DELL trended in the ‘bearish’ zone over the past day, while sentiment around ORCL remained in the ‘extremely bullish’ zone. 

AI Infrastructure Spending Lifts DELL, HPE Stocks

Dell and Hewlett Packard have both leaned heavily into the surge in AI infrastructure spending over the past few quarters. Dell shipped $8.2 billion worth of AI-optimized servers in its second quarter (Q2) and ended the period with an $11.7 billion AI order backlog. 

HPE has similarly expanded its AI server and networking business, while positioning its GreenLake platform around hybrid-cloud and AI infrastructure.

Super Micro Computer (SMCI), another server maker exposed to the same AI infrastructure buildout, also gained Friday. SMCI stock rose about 5%, although the move was smaller than those of Dell and HPE. Super Micro’s AI infrastructure story had already received a boost earlier in the week following disclosure of a $60 billion order book.

Stocks Rebound After Four-Session Slide

The gains in technology and AI infrastructure stocks came during a broader rebound in U.S. equities. The SPDR S&P 500 ETF (SPY), the SPDR Dow Jones Industrial Average ETF (DIA) and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) all moved more than 1% higher in midday trade.

The major averages had fallen for four consecutive sessions entering Friday. For the Dow Jones Industrial Average, it was the longest daily losing streak since late April.

Lower crude prices also provided some relief after oil prices climbed sharply earlier in the week amid escalating tensions in the Middle East.

Inflation Keeps Fed In Focus

The market rebound came despite a monthly core inflation reading that was slightly hotter than expected. Consumer prices rose 0.4% in August from July and 3.4% from a year earlier, matching Dow Jones estimates.

Core CPI, which excludes food and energy prices, increased 0.3% month over month, compared with economists’ 0.2% estimate. The CME Group’s FedWatch tool showed an 86% probability of a quarter-point rate hike at next week’s Federal Open Market Committee (FOMC) meeting. 

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