Super Micro Computer and Dell Climb 6%, Hewlett Packard Enterprise Gains 2% as AI Server Stocks Rebound From Election Sell-Off
Record AI backlogs and steady earnest estimates sit on one side, while cash burn, heavy debt, and fresh political threats to data center construction sit on the other. Which AI server maker has the most to lose if the bounce…
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AI server stocks are clawing back part of Thursday’s post-midterm sell-off, and the bounce is uneven across the group. Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) stock is at $28.73, up 6% in early trading. That gain only cuts a 34% slide over the past month, which came even after the company posted a strong September-quarter report.
Dell Technologies (NYSE:DELL) stock is at $335.36, up 6%. Over the past month, Dell stock has fallen 42%. Hewlett Packard Enterprise (NYSE:HPE) stock is at $44.86, up 2%, trailing its two server peers. A 36% one-month decline still weighs on Hewlett Packard Enterprise stock.
The sell-off hit share prices faster than it hit earnings forecasts for the group, starting with Dell, and for these AI server makers the central question is whether the rebound can hold or whether more selling lies ahead.
Midterm Fears Hit Data Center Builders
Thursday’s November 5 sell-off followed fears that Democratic control of Congress and Texas’s incoming governor could slow data center construction. Super Micro’s CFO Mark Long had already noted physical limits. He did so on the company’s November 3 earnings call, stating that “The binding constraints on AI build-outs across this industry right now are land, power, and data center shelves.”
A rebound after a steep drawdown is the best-supported read on the bounce in Super Micro, Dell and Hewlett Packard Enterprise, and a technical bounce is possible. Broader conditions help too, as a strong jobs print showing 165,000 jobs added and a broader tech rebound support risk appetite. The AI expansion story also extends well past the server names themselves, into the power, cooling, and networking suppliers we profiled in a free report on seven AI infrastructure stocks that aren’t chipmakers.
Dell’s Record Backlog Keeps Estimates Intact
Dell stock remains far below its 52-week high, which stands at $596. In Q2 FY2027, the company booked a record $60.9 billion in AI orders and ended the quarter with a $95 billion AI backlog. Dell lifted its full-year revenue guidance to $192 billion and expects $74 billion in AI server revenue.
Analysts haven’t cut their earnings estimates for Dell’s fiscal year ending January 2027, so the share drop has reduced the valuation on Dell stock.
Cash is the catch. Free cash flow at Dell fell 47% year over year to $986 million in the quarter ended July 31. The company carries net debt of $23.6 billion against a trailing gross margin of 19.9%.
Super Micro’s Sales Surge Comes With a Cash Bill
Super Micro disclosed on November 3 that its Q1 FY2027 sales nearly quadrupled to $19.9 billion. Even so, the company’s operations used $434 million in cash, and inventory rose past $15 billion ahead of expected shipments. Management raised the company’s fiscal 2027 revenue outlook to a range of $72 billion to $82 billion.
Product momentum is strong, with Super Micro among the first to ship Vera Rubin NVL72 racks with its liquid-cooling stack, while the company’s board is also conducting an independent review of certain transactions tied to export-control issues.
Hewlett Packard Enterprise Trails Its Server Peers
Hewlett Packard Enterprise is bouncing far less than Super Micro and Dell. Private cloud AI orders at Hewlett Packard Enterprise rose triple digits in Q3 FY2026 as customers adopted its AI factory platform for agentic AI and inferencing. Networking from the Juniper Networks acquisition now carries more weight in the company’s mix, setting it apart from its two server-focused peers.
PC and networking hardware stocks are moving the other way. HP Inc. (NYSE:HPQ) stock is at $29.04, down 1%. Meanwhile, Cisco Systems (NASDAQ:CSCO) stock is at $94.71, down 1%. That split shows the rebound is concentrated in AI server names.
How Super Micro, Dell and Hewlett Packard Enterprise Make Money
Super Micro is a pure-play AI server and rack builder, using its modular Data Center Building Block Solutions architecture to configure systems for hyperscale and enterprise customers. Dell pairs its AI server business with traditional servers, storage and a large PC unit, which spreads its revenue across more of the corporate IT budget. Hewlett Packard Enterprise combines servers and storage with an enterprise networking franchise, giving it the biggest networking weight of the three.
What Decides the AI Server Rebound From Here
Dell’s upcoming earnings report will show whether its backlog turns into cash. For Super Micro, the matching question is whether inventory and cash use improve, since one large data center customer made up for 44% of its Q1 revenue.
Record orders, steady estimates and reduced valuations form the case for the bulls behind Dell and Super Micro, while the bears counter with negative operating cash flow at Super Micro, Dell’s net debt and policy risk around data center construction. Watch for data center policy headlines from Washington and Texas. Cautious investors may want to monitor how the data center policy debate resolves.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
