Dell Doubles Growth Forecast on Surging AI Server Demand

Dell bets big on an AI infrastructure payoff -- new four-year revenue forecast doubles prior guidance

Dell anticipates strong long-term growth as clients like xAI and CoreWeave ramp up high-performance deployments. Dell has nearly doubled its long-term growth outlook on the back of surging demand for AI servers, raising revenue and earnings projections through its fiscal 2030 as it leans into the data center build-out. Following an analyst meeting on October 7, the company said it now expects annual revenue growth of 7-9%, up from a prior range of 3-4%. Adjusted earnings per share are forecast to grow at least 15% annually over the same period, nearly twice the company's earlier estimate of 8%. Dell's stock rose more than 5% in morning trading following the update. The jump reflects a sustained ramp in infrastructure sales tied to generative AI workloads. Dell said it has already shipped billions of dollars worth of AI servers and expects that figure to reach a $20 billion run-rate by 2026. Clients include major cloud service providers and specialized AI infrastructure firms such as CoreWeave and Elon Musk's xAI, both of which are rapidly scaling up their high-performance server deployments. The Infrastructure Solutions Group, which handles server, storage, and networking products, is now expected to grow 11-14% annually, compared to a prior range of 6-8%, arguably one of the clearest signs so far that Dell's role in the hardware supply chain is only going to grow, at least as long as training and inference demand continues to outpace supply. While the company builds and sells complete systems, its ability to source high-end Nvidia accelerators remains a gating factor, particularly for its AI-optimized PowerEdge line. Ultimately, the biggest bottleneck isn't Dell's manufacturing footprint, but access to GPU volume in a supply chain still dominated by hyperscalers. The client PC business remains a part of the company's long-term plan, but the new forecasts suggest that AI infrastructure is now the company's main focus. The PC market has yet to fully recover from its post-pandemic hangover, but Dell has pointed to a refresh cycle driven in part by Windows 10's end-of-support date on October 14 -- one week from now -- as one reason for optimism. Even so, the company only projects a compound annual growth rate of 1% for its client PCs, and it thinks the best opportunity for continued growth is in commercial systems, not the broader consumer market. Dell also reiterated its guidance for the current quarter and full year, and committed to raising its dividend by at least 10% annually through fiscal 2030. Still, some financial analysts have flagged margin risk as AI server competition intensifies. Higher build costs and component prices could squeeze profitability, even as top-line growth accelerates. For Dell, the concern will be not selling hardware but whether it can protect its earnings power in a market where hyperscalers are calling the shots.

Dell raises long-term growth targets, citing AI server demand

Dell on Tuesday nearly doubled its annual profit growth target for the next four years, betting on robust demand for its servers that power artificial intelligence workloads. The company, whose customers include Elon Musk's AI startup xAI and CoreWeave, lifted its expectations for annual growth in adjusted earnings per share to at least 15% from around 8%. Dell also said it expects compounded annual revenue growth between 7% and 9% for the next four years, up from its prior view of 3% to 4%. Insatiable demand for servers that provide the computing power needed to run services such as ChatGPT has turned Dell into one of the biggest winners of the generative AI boom.

Dell Says It Sees 'Massive' Growth Opportunity From AI

Dell Technologies wants you to know it's an artificial intelligence winner. The maker of a wide range products from AI servers to PCs said Tuesday it sees a "massive" opportunity ahead from AI, and raised its long-term outlook, pointing to growth driven by the emerging tech. Dell (DELL) projected its annual revenue could rise 7% to 9%, up from its prior outlook of 3% to 4%, and earnings-per-share growth of 15% or better, nearly double its previous forecast of 8% or more. "Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale. We're successfully translating that demand into growth and strong cash flow that we've largely returned to shareholders," CEO Michael Dell said in a release. The company also committed to dividend growth of 10% or more annually through fiscal 2030, two years later than its prior commitment. Shares of Dell jumped more than 6% to around $155 Tuesday following the news, before giving back those early gains and slipping into negative territory. (See here for more reporting from Investopedia on today's market moves.) In August, Dell had posted record quarterly revenue that topped analysts estimates, which the company attributed to strong AI demand. In a note to clients Tuesday, Citi analysts reiterated a "buy" rating and $160 target for the stock, a bit above the $153 mean of analysts surveyed by Visible Alpha, citing momentum in Dell's AI portfolio. Analysts at J.P. Morgan also suggested the server maker stands to benefit from a deal between partner Advanced Micro Devices (AMD) and ChatGPT maker OpenAI announced yesterday. As of midday Tuesday, Dell's stock has gained 27% so far in 2025, though it remains well off its highs around $175 last year.

Dell stock jumps 5% today after boosting growth outlook on strong AI demand

Dell stock: Dell Technologies' stock climbed 5% on Tuesday after the firm increased its long-term revenue and profit growth expectations, as per a report. During a meeting with analysts, Dell said that the company now expects annual revenue to expand between 7% and 9%, as per a CNBC report. Which is a jump from its previous forecast of 3% to 4%, according to the report. The computer maker said that for the full year, the firm now expects diluted earnings per share to grow at least 15%, compared with its previous expectations for growth of 8% or higher, as per the report. ALSO READ: MI450 series: The wonder chip that forced OpenAI into a deal with AMD -- should Nvidia worry? The Texas headquartered firm said it was raising its guidance because it capitalizes on "the unprecedented pace of change in technology," particularly in artificial intelligence, as reported by CNBC. CEO Michael Dell said that, "Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale," and also added that, "We're successfully translating that demand into growth and strong cash flow that we've largely returned to shareholders," as quoted in the report. Dell also highlighted that its engineering, deployment, ecosystem and other services "position it as the AI infrastructure solutions leader," as quoted by CNBC. ALSO READ: Dollar's 10% slide under Trump has cost you -- Paul Graham issues stark wealth warning and explains how much The American computer maker also reiterated its third-quarter and fiscal 2026 forecasts, as per the report. The firm had said in its latest earnings report in August that it plans to ship $20 billion of AI servers in its fiscal 2026, which is double than what it sold last year, according to the CNBC report. Dell is one of Nvidia's key customers as the company buys chips from the AI leader and builds computers around them, which it sells to end-users such as CoreWeave, a cloud service, and Elon Musk's AI startup xAI, as per the report. Why did Dell's stock rise today? Because the company raised its long-term revenue and profit growth forecasts, as per the CNBC report. How much revenue growth is Dell expecting? Dell expects annual revenue growth of 7% to 9%, which has risen from its previous 3% to 4% forecast.

Dell's AI-Focused Strategy Pays Off, Over 15% EPS Growth Expected Through 2030

Dell Raised Its Long-Term Sales and Profit Forecasts, Citing Surging AI Server Demand and Stronger Infrastructure Growth. Dell Technologies Inc. has significantly revised its growth forecasts, citing increasing demand for artificial intelligence (AI) products. The company now expects annual revenue growth of 7% to 9% for the next four years, compared with its previous estimate of 3% to 4%. It also projects earnings per share, excluding certain items, to grow by at least 15% annually, up from the earlier forecast of about 8%. Chief Operating Officer Jeff Clarke announced the updated "long-term financial framework" at an investor event in New York. The projections extend through the 2030 fiscal year, reflecting Dell's confidence in sustained demand driven by AI. Clarke emphasized that earlier industry estimates underestimated the scale of the AI market, which has grown beyond expectations. Following the announcement, 5.2% to $153.34 in New York trading. Shares of other AI server suppliers, including Super Micro Computer Inc. and Hewlett Packard Enterprise Co., also gained. Dell reiterated its quarterly and annual forecasts through fiscal year 2026 and pledged to increase its quarterly dividend by at least 10% annually through 2030.

Dell raises long-term annual revenue, profit growth forecasts on strong AI server demand

Dell raised its long-term revenue and profit growth forecasts on Tuesday, signaling robust demand for its servers that power artificial intelligence workloads, sending its shares up nearly seven per cent in premarket trading. Insatiable demand for computing power needed to train and run generative AI products such as ChatGPT has driven strong demand for companies including Dell and Super Micro Computer. Dell now expects compounded annual revenue growth between seven per cent and nine per cent, up from its prior forecast of three per cent to four per cent. The company also raised its expectations for annual growth in adjusted earnings per share to at least 15 per cent, nearly double its previous target of eight per cent. "Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale," CEO Michael Dell said in a statement.

Dell raises growth, boosted by demand for AI

Dell Technologies shares rose nearly 5% in Wall Street pre-market trading on Tuesday, following the announcement of a significant revision of its long-term targets. During a presentation to analysts, the IT group said it now aims for annual revenue growth of between 7% and 9%, up from a previous estimate range of 3% to 4%. Dell also anticipates at least a 15% increase in its diluted EPS for the current fiscal year, up from 8% previously. This improved outlook is based on strong demand for artificial intelligence infrastructure. CEO Michael Dell emphasized that customer demand for computing, storage, and networking capabilities remains "insatiable" and that this momentum is already translating into sustained growth and strong cash flow. The group, which has made AI a strategic focus, is positioning itself as a key provider of comprehensive solutions for the large-scale deployment of artificial intelligence technologies. Dell is also a preferred partner of Nvidia, integrating its chips into its servers before reselling them to specialized companies such as CoreWeave and Elon Musk's xAI. By strengthening its role in the AI value chain, the manufacturer is consolidating its status as a major player in the technology infrastructure sector.

Dell raises long-term annual revenue, profit growth forecasts on strong AI server demand

(Reuters) -Dell raised its long-term revenue and profit growth forecasts on Tuesday, signaling robust demand for its servers that power artificial intelligence workloads. Insatiable demand for computing power needed to train and run generative AI products such as ChatGPT has driven strong demand for companies including Dell and Super Micro Computer . Dell now expects compounded annual revenue growth between 7% and 9%, up from its prior forecast of 3% to 4%. The company also raised its expectations for annual growth in adjusted earnings per share to at least 15%, nearly double its previous target of 8%. "Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale," CEO Michael Dell said in a statement. (Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)