Wall Street snapped a three-day losing streak on Wednesday, led by strong results from Dell Technologies and GitLab.

The Dow rose about 0.6%, while the S&P 500 and Nasdaq each gained about 0.5%. Nvidia climbed 4% to 5%, helped by Dell’s strong AI server figures.

Not every technology stock joined the rally. Credo Technology and Palo Alto Networks both fell sharply, underscoring how quickly investors are punishing any sign of slowing momentum, even in areas that have benefited from heavy AI spending.

Dell’s AI Server Business Drives Record Numbers

Dell Technologies was the day’s main market mover. The company reported second-quarter revenue of $47 billion, up 58% from a year earlier and well above Wall Street expectations.

Dell raised its full-year revenue outlook by $25 billion, bringing the forecast to around $192 billion. It also increased adjusted earnings per share guidance to $25.50.

Much of the growth is being driven by Dell’s AI server business. The company said it received about $60 billion in AI server orders during the quarter and ended the period with a backlog of nearly $95 billion.

Dell shares jumped as much as 11% on the news. Nvidia also rose, as Dell’s AI servers rely heavily on Nvidia chips, keeping the hardware supply chain in focus for investors tracking demand for AI infrastructure.

GitLab Climbs as AI Disruption Fears Ease

GitLab shares rose between 12% and 15% after the company reported quarterly results that beat expectations.

Revenue reached $286.3 million, up 21% year over year. GitLab also said gross bookings hit a record and net annual recurring revenue grew more than 40%.

Investors have been closely watching the company amid ongoing debate about whether AI tools will reduce demand for software development platforms.

CEO Bill Staples pushed back on that concern, saying that more AI-generated code increases the need for security, governance, and orchestration tools.

The results offered investors a more positive view of software companies facing AI-related competition, especially as the market looks for evidence that AI adoption is changing software demand rather than simply adding new risks.

Credo and Palo Alto Pull Back Despite Strong Results

Credo Technology reported revenue of $479 million, up 115% from a year ago. Adjusted earnings per share came in at $1.20, marking the company’s seventh straight quarter of triple-digit revenue growth.

Even so, the stock fell about 20%. Investors focused on gross margin, which slipped to 68%, while the company guided for 67% to 69% in the next quarter.

The move highlighted the pressure facing high-growth AI stocks, where even strong revenue growth may not be enough if results fall short of elevated expectations.

Palo Alto Networks also fell roughly 9% to 11% after beating earnings estimates. The company additionally announced the acquisition of AI security platform Console.

The decline in Palo Alto added pressure to cybersecurity and software shares more broadly, showing that strong headline numbers can still be outweighed by investor focus on margins, guidance, and deal-related execution.

Markets still face several headwinds. The 10-year Treasury yield is near 4.8%, oil prices remain elevated, and some investors are now pricing in another Federal Reserve rate hike.

For now, Dell’s results have given the AI infrastructure trade a fresh boost.