Dell Technologies sits on a $95 billion AI server backlog after booking approximately $60.9 billion in additional orders during the first quarter of fiscal 2027. The company offset 89% of its cash outflows by increasing accounts payable by $11.66 billion while maintaining $11.6 billion in cash without drawing on its credit line. Barclays downgraded the stock to Equal Weight with a $574 price target, noting that AI accounts for only 5% of IT budgets and that recent strength stems primarily from neoclouds and sovereign buyers rather than broad enterprise adoption. CEO Michael Dell has warned that memory supply constraints could last up to four years, prompting Dell to lock in multi-year supply commitments with customers.
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