Dell Technologies Inc. (NYSE: DELL) stated that enterprises are increasingly treating data centers as strategic assets rather than operating expenses. This shift in mindset is supporting durable demand for both AI infrastructure and traditional server modernization.

Shift in Demand Drivers

This projection marks a significant evolution in the company's outlook. While large enterprise PC refreshes currently drive double-digit growth, the long-term trajectory is increasingly defined by artificial intelligence. The COO highlighted that this shift is reshaping not just the data center but the entire underlying infrastructure stack.

Customer Growth Dynamics

A majority of the company's current growth originates from existing customers. These clients continue to refresh and modernize their data centers to support traditional workloads. The COO noted that the majority of the installed base remains on 14th-generation or older servers, indicating a significant and durable refresh opportunity for the business.

Infrastructure Refresh Cycle

Demand is broadening across NeoClouds, sovereign entities, and enterprise customers. The company's customer count has surpassed 6,500. While large enterprises drive current momentum through PC refreshes, the extension of upgrade cycles by cost-sensitive segments suggests a divergence in spending behavior.

What the Numbers Show

The juxtaposition of immediate double-digit growth from legacy PC/server refreshes against the long-term projection that AI will dominate 75% of data center demand reveals a transitional market structure. Current revenue visibility relies on the modernization of 14th-generation or older hardware, while future expansion hinges on capturing the agentic AI workload shift. This indicates that near-term stability is provided by traditional enterprise cycles, whereas top-line acceleration post-2025 will depend on execution in the AI infrastructure segment.

Five major technology stocks showed divergent moves in Wednesday’s pre-market session following recent quarterly earnings reports. While GitLab and Dell Technologies gained ground, MongoDB and Credo Technology Group faced selling pressure.

Dell Technologies

Dell Technologies (NYSE: DELL) shares moved upwards by 8.43% to $460.83 during Wednesday's pre-market session. The company's market cap stands at $274.6 billion. This follows the Q2 earnings report released yesterday.

Previously, Dell shares fell 6.80% to close at $425 during regular trading. In after-hours trading, the stock rose nearly 8% to $459.03.

The company reported fiscal second-quarter adjusted EPS of $7.04, beating the $4.91 estimate by 43.38%. Revenue reached $46.97 billion, up from $29.78 billion a year earlier, surpassing the $44.95 billion expectation.

AI-optimized server revenue doubled to a record $16.4 billion. AI server orders hit a record $60.9 billion, pushing the backlog to $95 billion.

GitLab

GitLab (NASDAQ: GTLB) stock moved upwards by 20.9% to $54.5 during Wednesday's pre-market session. The market value of their outstanding shares is at $7.6 billion. Q2 earnings came out yesterday.

Previously, GitLab shares decreased by 3.12% to close at $45.09. In after-hours trading, the stock rose 17.32% to $52.90.

Fiscal second-quarter revenue was $286.25 million, up from $235.96 million a year earlier and above the $273.12 million estimate. Adjusted EPS of 24 cents topped expectations of 18 cents.

GitLab raised its fiscal 2027 adjusted EPS guidance to 85-87 cents from 81 cents and increased its revenue outlook to $1.129 billion-$1.133 billion from $1.12 billion.

MongoDB

MongoDB (NASDAQ: MDB) stock decreased by 11.71% to $383.4 during Wednesday's pre-market session. The market value of their outstanding shares is at $34.9 billion. Q2 earnings came out yesterday.

Previously, MongoDB shares fell 4.23% to end at $434.21. In extended trading, the stock crashed 13.94% to $373.70.

Fiscal 2027 second-quarter revenue was $771.77 million, up 30% year over year and above the $732.91 million estimate. Adjusted EPS of $1.90 beat expectations of $1.61.

MongoDB raised its fiscal 2027 adjusted EPS guidance to $6.39-$6.58 from $6.11 and increased its revenue outlook to $2.99 billion-$3.03 billion from $2.95 billion.

Credo Technology Group

Credo Technology Group Holding Ltd (NASDAQ: CRDO) stock declined by 10.47% to $185.0 during Wednesday's pre-market session. The market value of their outstanding shares is at $38.8 billion. The Q1 earnings report came out yesterday.

Previously, Credo shares fell 8.65% to $206.63. After-hours trading saw a sharp drop of 10.15% to $185.65.

First-quarter revenue was approximately $479 million, up 114.7% year over year and 9.6% sequentially, beating the $471.77 million estimate. Adjusted EPS of $1.20 topped expectations of $1.17.

Credo guided for second-quarter revenue of $525 million-$535 million, above the $515.79 million estimate, and forecast an adjusted gross margin of 67%-69%.

Palo Alto Networks

Palo Alto Networks (NASDAQ: PANW) shares declined 5.24% to close at $362.09. The stock ranged between $357.26 and $375.92. In extended trading, shares dropped another 1.9% to $355.20.

Fourth-quarter revenue was $3.41 billion, up 34% year over year and above the $3.35 billion estimate. Adjusted EPS of $1.02 exceeded expectations of 98 cents.

The company guided for fiscal 2027 revenue of $14.10 billion-$14.20 billion and adjusted EPS of $4.16-$4.19, both above Wall Street estimates. Palo Alto also announced the acquisition of AI-native platform Console.

What the Numbers Show

Despite all five companies beating consensus estimates for both revenue and earnings per share, three stocks (Palo Alto, Credo, MongoDB) declined in regular trading and faced further selling pressure or mixed reactions in after-hours sessions. This divergence suggests investors are pricing in future growth sustainability rather than rewarding past quarter performance, particularly given the high baseline expectations in the AI infrastructure and software sectors.