Later this summer, the nuclear-powered USS Gerald R. Ford will export electricity from its two A1B reactors directly to Naval Station Norfolk, powering the largest naval base in the world from a $13 billion supercarrier sitting at the pier.
Acting Secretary of the Navy Hung Cao provided the news during a May 14 House Armed Services Committee hearing on the FY2027 budget. “This summer, Naval Station Norfolk in Virginia is going to be powered from an aircraft carrier,” he said plainly. “We’re going to export the energy from the aircraft carrier to the base.”
A Navy spokesperson later confirmed the initial test will happen later this year as part of a broader push for “firm, baseload power” and mission assurance at installations.
The Ford just returned to Norfolk after a record 326-day deployment. Its A1B reactors built by Bechtel and BWXT deliver roughly 25% more energy and operational availability than the older A4W plants on Nimitz-class carriers, with fewer sailors needed to run them. The test will show whether a docked supercarrier can serve as a floating backup generator during grid outages, attacks, or disasters. The idea is also being pitched that the power could also be utilized in drought-stricken areas for potable water production.
But this isn’t the world’s first floating nuclear power play. The concept dates back to the 70s when a Westinghouse-Tenneco joint venture proposed mass-producing 1,200 MW plants on massive concrete barges off the U.S. East Coast. The idea died in regulatory and political quicksand, but only in the US.
Russia actually built and operates one. The Akademik Lomonosov, with two KLT-40S reactors delivering about 70 MWe plus district heat, has been supplying the remote Arctic town of Pevek in Chukotka since 2019. It replaced the aging Bilibino nuclear plant and a coal facility.
Rosatom has pushed follow-on designs using RITM-200M reactors for mining projects like Baimskaya in the far north, with some fabrication shifting to Chinese shipyards.
Europe remains mostly conceptual. Denmark’s Copenhagen Atomics is reviewing reactor tech for Norwegian firm Ocean-Power’s floating barge ideas, and UK-based Core Power has partnered with Samsung on molten-salt concepts. No steel in the water yet.
At the same hearing, Chief of Naval Operations Adm. Daryl Caudle floated something bigger. He called for a Navy reactor pilot program modeled on the Army’s Janus initiative, which has already shortlisted nine domestic bases and is using DIU milestone contracts for microreactors targeted by 2028, and the Air Force’s ANPI program, which selected companies including Antares Nuclear and Radiant, aiming for first power around 2030.
“While the Army may be tapped to be the overall lead,” Caudle said, “I see no world in which the Navy is not going to be part of that discussion… But we need to get a pilot established and a target date and get one going.”
Dell Technologies surged 38% in New York premarket trading after delivering a major earnings beat and issuing a stronger-than-expected annual sales forecast, fueled by explosive demand for AI servers that continues to reshape the hardware sector.
Earnings results reinforce Dell's position as a direct beneficiary of the AI infrastructure buildout, as hyperscaler capex accelerates toward an estimated $800 billion this year and demand for compute-heavy server infrastructure remains robust.
We’re building a Dell AI factory with @nvidia to power @grok for @xai @elonmusk pic.twitter.com/2aTYLtCBup
— Michael Dell 🇺🇸 (@MichaelDell) June 19, 2024Dell now expects fiscal 2027 revenue of $165 billion to $169 billion, far above its prior forecast of $138 billion to $142 billion and Bloomberg consensus of $142.1 billion. Adjusted earnings are now projected at $17.65 to $18.15 a share, versus the prior view of $12.65 to $13.15.
2027 Forecast:
Sees revenue $165 billion to $169 billion, saw $138 billion to $142 billion, Bloomberg Consensus estimate of $142.12 billion
Sees adjusted EPS $17.65 to $18.15, saw $12.65 to $13.15, estimate $13.14
Sees AI Server revenue $60 billion
Second Quarter Forecast:
Sees revenue $44 billion to $45 billion, estimate $35.06 billion
Sees AI Server revenue about $15.5 billion
Sees adjusted EPS $4.70 to $4.90, estimate $3.05
First-quarter results crushed the analyst estimates tracked by Bloomberg. Revenue soared 88% year over year to $43.8 billion, while adjusted EPS hit $4.86, compared with estimates of $2.99. AI server revenue came in at $16.1 billion, exceeding estimates, while AI server backlog rose to $51.3 billion.
First Quarter Results:
Total net revenue $43.84 billion, +88% y/y, estimate $35.52 billion
Adjusted EPS $4.86 vs. $1.55 y/y, estimate $2.99
AI server backlog $51.3 billion, estimate $45.33 billion
Infrastructure Solutions Group net revenue $29.01 billion vs. $10.32 billion y/y, estimate $22.3 billion
Client Solutions Group net revenue $14.61 billion, +17% y/y, estimate $12.93 billion
Cash flow from operations of $4.1 billion
Adjusted gross margin 18.1% vs. 21.6% y/y, estimate 17.3%
Adjusted operating margin 9.7% vs. 7.1% y/y, estimate 7.82%
Adjusted operating income $4.24 billion vs. $1.67 billion y/y, estimate $2.77 billion
"Our record Q1 performance reflects strong in-quarter demand, as well as our pace of innovation across the full stack of PCs, compute and storage," said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "We booked $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue. We're increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing."
"Execution was exceptionally strong across the business – from supply chain to sales to pricing – driving record revenue of $43.8 billion, record EPS, record Q1 cash flow of $4.1 billion and continued strong shareholder returns of $2.1 billion," said David Kennedy, chief financial officer, Dell Technologies. "We entered FY27 with clear momentum, raising our full-year revenue outlook to $167 billion at the midpoint, up nearly 50% year over year."
Goldman analysts framed the earnings as "Broad-based beat drives raised FY outlook."
Analyst Katherine Murphy's first take noted, "DELL should trade higher on an earnings beat & better-than-expected FY27 guidance driven by strong AI server expectations and strength in PC profitability."
Murphy's 12-month price target is $230 based on 15.0x our NTM+1Y EPS.
UBS analyst David Vogt raised his target for the stock by a staggering 81% but kept the rating neutral.
Here's what others on Wall Street are saying (courtsey of Bloomberg):
Citi (buy, PT $290)
Vital Knowledge
Bloomberg Intelligence
"Dell's robust 1Q sales and EPS beat, along with its sharply higher outlook, was broad-based and suggests sustained demand strength"
"Even as demand pull-forward drove 1Q results, the magnitude of the guidance increase suggests strength in both AI and traditional servers will continue in coming quarters"
Shares of Dell topped $440 in premarket trading and were up nearly 40%. The trend has gone absolutely parabolic over the past year.
We asked earlier this week: "Will $800 Billion in AI Capex Spending Boost US GDP?"
Tyler Durden Fri, 05/29/2026 - 07:20Nearly two months of the national average gasoline price exceeding the politically sensitive $4-per-gallon level have left corporate America increasingly worried about consumer health this earnings season. Kraft Heinz's CEO warned that some households are "literally running out of money," while UBS analysts caution that even as the AI-linked chip and memory bubble inflates markets to new highs, there are growing "consumer cracks beneath the surface."
The Financial Times reports that U.S. consumers may face a cash crunch this summer as Trump-era tax refund tailwinds fade and Iran-related fuel shocks squeeze household budgets.
In other words, the sugar high is ending for consumers...
Tax refunds averaging nearly $3,500 have largely helped keep spending resilient, with Walmart, Target, and Lowe's citing refund-driven support in recent earnings calls.
Some retailers warn that the boost is only temporary. Target said the tax-refund benefit will fade in the back half of the year, while Advance Auto Parts expects sales to slow as refund tailwinds disappear.
"They're literally running out of money at the end of the month," Kraft Heinz CEO Steve Cahillane said in a recent interview with the WSJ. "We're seeing negative cash flows in the lower-income brackets where they're dipping into savings."
Earlier this month, we showed that personal spending growth far outpaced personal income.
... the personal savings rate has collapsed to a 3-year low.
PNC Bank analyst Brian LeBlanc noted, "One of the key reasons the economy has remained so resilient to higher interest rates, elevated inflation, and repeated shocks in recent years is that households have stayed in solid financial shape, allowing consumers to keep spending even as job and income growth has slowed."
"The tax refunds have been largely erased by the increase in Middle East price pressure," said Gregory Daco, chief economist at EY Parthenon, as the FT quoted. "The longer the conflict lasts, the more we move to an adverse scenario where inflation proves more persistent and erodes consumer spending growth."
UBS analyst Mark Paski commented on the FT article in a note titled "Consumer Cracks Beneath the Surface as Markets Push Higher."
Paski wrote:
Consumer discretionary stocks rose 2.3% last week, but the equal‑weight consumer discretionary cohort has now broken below its Global Financial Crisis (GFC) lows, having previously held that level — underscoring a widening divergence beneath the surface.
At the same time, NDX logged its 15th all‑time high on Friday, while the S&P 500 is now on an eight‑week winning streak. At a high level, that backdrop suggests markets are on solid footing — but consumer‑linked signals are telling a very different story.
Over the weekend, the FT flagged risks of a potential "fiscal cliff" for consumers in the second half of 2026, as excess cash buffers from refunds begin to fade.
It remains tempting to revisit some of the more washed‑out names across the space, which could outperform if key headwinds — including interest rates, crude oil, and inflation sentiment — begin to show signs of peaking. That said, Friday's sharp move in Ross Stores (ROST), up ~8%, does not yet point to a broadening recovery across the group.
More broadly, parts of the consumer complex appear to be approaching a "terminal velocity," with dispersion still pronounced. Retailers are trading better today, but hardlines remain under meaningful pressure.
Recent commentary has not helped sentiment: several companies, including AutoZone (AZO), noted on recent conference calls that quarter‑to‑date (QTD) trends have shown little improvement versus the prior quarter, alongside headwinds from a colder‑than‑expected May.
Net, incoming data points and company commentary continue to reinforce the existing narrative, with little to force a shift in short positioning at this stage.
Signs of consumer stress are rising, with delinquencies climbing across credit cards, auto loans, and student loans, while lower-income households remain trapped on the wrong side of the K-shaped economy.
Taken together, the consumer cliff that the FT warns about will likely prompt the Trump team to ramp up its affordability agenda this summer as the midterms come into view.
Tyler Durden Fri, 05/29/2026 - 06:55Authored by Prabhat Ranjan Mishra via Interesting Engineering,
Miniature floating nuclear power plants (FNPP) could help Greek islands by supplying power, according to a new study. Such plants could also help decarbonize Greece's non-interconnected islands, according to the study by the Deon Policy Institute, ABS, Core Power, and Athlos Energy.
The concept of floating nuclear power plants is not new. (Representational image)A floating nuclear power plant is a nuclear installation in which one or more reactors are integrated into a floating platform or vessel, designed to generate electricity, heat, and, in some cases, potable water through desalination. They are powered by Small Modular Reactors - smaller-capacity reactors designed to be manufactured as standardized units in factory settings and transported to their deployment sites, according to the study.
Floating Nuclear Power Plants' DeploymentDeon also highlighted that Greece's extensive coastline and archipelagic geography favor floating deployment, enabling generation near demand without permanent land use or competition with renewables, agriculture, or housing.
It's also claimed that FNPPs can replace oil-fired units on non-interconnected islands, support port electrification and coastal hubs without straining the grid, and offer relocation flexibility that limits long-term infrastructure lock-in.
Deon also emphasized that, as the world's leading maritime power, Greece has a unique comparative advantage. FNPPs leverage shipyard capacity and regulatory expertise, with approximately 75% of total value added associated with the Balance of Plant - areas where the Greek maritime-industrial base already possesses relevant capabilities.
The concept of floating nuclear power plants is not new - the Russian FNPP Akademik Lomonosov has been in commercial operation since 2019, and the sector shares a common technological and regulatory foundation with decades of naval nuclear propulsion experience in military submarines and surface vessels.
No Institutional Barriers Were Identified"This study shows that FNPPs are not a distant or purely theoretical option for Greece. No fundamental technical or institutional barriers were identified. The real challenge is building the policy, regulatory, financial and social foundations needed for responsible assessment," said George Laskaris, president of the Deon Policy Institute.
It's also claimed that Greece's potential deployment of Floating Nuclear Power Plants (FNPPs) is increasingly viable but remains constrained more by institutional preparedness and political continuity than by technology.
The study claimed that the FNPP technology is considered mature and commercially credible rather than experimental. It also revealed that no major legal or regulatory barriers were identified, and low emissions and limited land use are significant but remain undercommunicated in public discourse.
"Initial findings shed important light on how FNPPs can be assessed and integrated within existing frameworks, a critical question as the industry moves toward practical deployment. The real challenge before us is integration into policy and regulatory frameworks, and ABS is committed to helping the industry navigate that path," said Patrick Ryan, ABS Senior Vice President and Chief Technology Officer, in a statement ahead of next week's Posidonia conference in Athens.
Regulatory work remains to be done, and public acceptance must be secured, but otherwise, a floating nuclear plant could be in operation in Greece by 2035-40, according to Maritime Executive.
Tyler Durden Fri, 05/29/2026 - 06:30