Dell Raises Growth Forecasts, Betting Big on AI Server Demand

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 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)