Dell is expected to report sharp growth when it posts earnings on Tuesday, and analysts are upbeat about industry developments that could benefit financial results into next year

Dell reports July-quarter earnings results after the market closes on Tuesday.

Some high-profile deals within the artificial-intelligence landscape could mean an even bigger rally for shares of Dell Technologies, according to an analyst.

For one, Nvidia's (NVDA) recent announcement of a $500 billion financing platform with third-party capital to support frontier AI labs and other major players looks like a positive for Dell (DELL), Mizuho's Vijay Rakesh said in a recent note to clients. It "could drive meaningful demand" for AI infrastructure even at a fraction of that amount, he added.

Dell makes data-center servers that hold central processing units, which are currently in high demand to support agentic AI and inference workloads. The company also makes AI-optimized servers which support AI chips such as Nvidia's graphics processing units.

And while SpaceX's (SPCX) plan to deploy up to 10 gigawatts of computing power by the end of next year is "potentially optimistic" in his view, even if SpaceX deploys about seven gigawatts of systems, it could drive upside for Dell in 2027, Rakesh wrote. He added that a seven-gigawatt deployment could be a $200 billion-plus opportunity for Nvidia, which SpaceX has said it will exclusively buy chips from. Nvidia and Dell work together on enterprise-grade servers and racks for AI training and inference.

Rakesh noted that SpaceX's data-center capital expenditures could surpass those of Amazon.com (AMZN) and Google (GOOGL) (GOOG).

The developments could be a further tailwind for shares of Dell, which have already outperformed some of the market's hottest AI stocks this year.

The server maker's stock was up fractionally on Monday afternoon, and is up 265.6% so far this year. That's more than Micron Technology's (MU) gain of 229.3% on the year as its business has surged due to the AI-driven boom for memory chips.

Dell's stock has also outperformed those of Seagate Technology (STX) and Western Digital (WDC), which are up 197% and 159%, respectively, this year. The storage providers have become major beneficiaries of the AI data-center buildout.

Meanwhile, fellow server maker Super Micro Computer (SMCI) impressed Wall Street earlier this month with better-than-expected guidance for both revenue and gross margin, a measure of profitability. Rakesh said that comes as a positive read for Dell.

Dell is due to report its own earnings after Tuesday's closing bell.

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Evercore ISI analyst Amit Daryanani said the debate around Dell's stock has changed since its last earnings report. Then, investors wondered how real AI-infrastructure demand really was. Now they're wondering how much product Dell will be able to ship, he said.

Dell said it had reached a record $51.3 billion in AI backlog during its last earnings report, Daryanani added, and the company would be able to recognize more upside if not for supply shortages.

He also noted to clients "material capex raises" and commentary from neocloud CoreWeave (CRWV) and SpaceX, which he said are Dell's "two largest customers." That refers to capital expenditures, or the spending that these companies are putting toward things like data centers and hardware.

Across the infrastructure field, "constraints are broadening rather than easing," Daryanani said, and he expects that dynamic to get worse in 2027.

Daryanani also expects strong performances from Dell's storage business and its client-solutions group, which includes personal computers.

Dell is expected to report July-quarter revenue of $44.9 billion when it posts results, according to analysts' estimates compiled by FactSet. The consensus calls for adjusted earnings of $4.92 per share in the second quarter, which would represent growth of 112% from a year ago.

The company's server and networking segment is expected to see revenue grow almost 95% from the previous year, to $25.2 billion.

For the October quarter, Wall Street is looking for adjusted earnings of $4.47 per share and overall revenue of $41.4 billion, according to the FactSet consensus.

-Britney Nguyen