Dell Technologies Boosts Profit Forecast Amid AI Demand Surge

Published 1 days agoDELL

Dell Technologies Boosts Profit Forecast Amid AI Demand Surge

Dell Technologies has revised its annual adjusted profit forecast upward to $9.40 per share, a slight increase from an earlier prediction of $9.30. This adjustment comes on the back of robust demand for AI-powered servers, signaling strength in a critical segment of its business. According to Reuters, this optimism is helping to propel Dell's role in the burgeoning AI infrastructure market.

A remarkable surge in AI server orders marked this quarter for Dell, with $12.1 billion recorded, outpacing the entirety of fiscal 2025's shipments. The backlog now stands at $14.4 billion, pointing to sustained demand. Additionally, Dell's Infrastructure Solutions Group has seen its revenue grow by 12%, further underscoring the increased adoption of AI technologies.

To accelerate AI infrastructure adoption, Dell recently introduced advanced AI servers featuring Nvidia's Blackwell Ultra chips. These developments have not gone unnoticed by investors, as Dell's stock rose nearly 20% following these announcements, reflecting confidence in the company’s strategic direction. This growth underscores Dell's focus on AI, addressing the evolving needs of enterprise customers in this rapidly expanding field.

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