Dell's earnings blowout makes clear now is not the time to go against the AI grain

Don't fight the tape. That's the message from strategists at Piper Sandler on Friday morning, and you know what, it's hard to argue with their take. "The market's price action continues to remind us of a simple mantra from the movie Maverick— 'Don't Think, Just Do,'" they wrote. "The primary trends are firmly bullish, rewarding investors who avoid over-analyzing the macro noise and instead follow the tape's leadership. By sticking with momentum leaders and avoiding laggards, investors are capturing the market's grind into new highs." Importantly, in many cases, the winners are winning thanks to earnings, not simply multiple expansion. Take a look at server maker Dell Technologies , the latest company to report a blowout quarter on the back of the artificial intelligence spending boom. If you're only looking at the price action — shares up over 30% on Friday — you could be forgiven for thinking that we're starting to see bubble behavior. However, as was the case with Nvidia from the start of its historic run following the launch of ChatGPT in late 2022 , it's not a bubble if the fundamentals back it. That is certainly the case with Dell. Wall Street has already raised its fiscal 2027 full-year earnings estimate to $16.85 a share, up from $13.12 prior to Thursday night's report, according to FactSet data. Meanwhile, estimates for next fiscal year have jumped to $20.21 a share from $15.18. That represents a 28.4% increase to FY27 numbers and a 33% increase to FY28 numbers. …