S&P 500 and Nasdaq 100 futures are up 0.1%, while the Dow Jones is gaining 0.2% ahead of the final trading session of May—a month that has proven to be exceptionally strong for the stock markets. The AI narrative remains the main driver: Dell’s after-hours results literally sent the market soaring and pushed the entire computer industry sharply higher.
Dell reported a nearly ninefold year-over-year increase in AI revenue and raised its full-year guidance to $165–169 billion with EPS of $17.90—well above analysts’ expectations of $142.5 billion and $13.09 in EPS. It is Dell’s results that are driving market sentiment today; Dell joins the ranks of “tech dinosaurs” that have found a second life as AI players, much like Intel, Cisco, and Nokia before them. It is worth noting, however, that Goldman Sachs estimates that pension funds are poised to sell $14 billion worth of shares as part of their monthly rebalancing—the 12th-largest estimate of its kind since at least 2000.
On the sector front, technology and computer hardware are clearly winning: Dell +35%, HPE +17%, NetApp +19%, SMCI +10%, HP +7%. Today’s losers include space companies following the Blue Origin rocket explosion on the launch pad (ASTS -15%, Rocket Lab -5.5%), the apparel sector (Gap -15%, American Eagle -11%), and some cybersecurity firms (SentinelOne -16%).
Source: XTB
Company Information
-
Dell (DELL) +35% – An absolute earnings sensation: the company raised its full-year revenue guidance to $165–169 billion (compared to the consensus estimate of $142.5 billion), and revenue from AI servers surged nearly 9x year-over-year. Analysts are calling it a "breakout quarter" and comparing Dell to Intel or Cisco—veteran players who are once again becoming key beneficiaries of the AI boom.
-
Gap (GAP) -15% – The apparel giant lowered its full-year sales growth forecast to 1–2% (previously 2–3%), and Q1 revenue came in at $3.50 billion versus the expected $3.52 billion. The main issue is the struggling Old Navy brand, which weighed on the entire report.
-
SentinelOne (S) -16–20% – The cybersecurity company severely disappointed with its Q2 revenue forecast (USD 289–291 million versus the expected USD 292 million) and announced an 8% reduction in full-time headcount – the market reacted with a sharp sell-off.
-
AST SpaceMobile (ASTS) -11–15% – Shares of the space company, a partner of Blue Origin, plummeted after the New Glenn rocket exploded on the launch pad during a ground test on Thursday evening in Florida. EchoStar (-4.5%) and Rocket Lab (-5.5%) also fell in the wake of ASTS.
-
NetApp (NTAP) +15–19% and Okta (OKTA) +7–8% – Both companies surprised the market with better-than-expected results: NetApp posted solid growth in the storage segment and raised its full-year guidance, while Okta—a leader in identity management—raised its full-year revenue guidance and beat consensus on every line item.
RBNZ Regime Change: The Ultimate Hard-Hawk Pivot 🦅 Time to shine for NZD 🇳🇿
BREAKING: Sharp drop of the CAD; Canadian GDP data spooked investors 🚨
German inflation data well below expectations. A dovish signal for ECB?
EU50 near record highs: broad-based gains and buybacks support european equities 🔎
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
