Dell's AI Server Demand Drives Strong Profit Outlook and Record Backlog
15 Sources
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Dell Annual Profit Outlook Tops Estimates on AI Server Demand
Dell Technologies Inc. gave a profit outlook for the year that exceeded estimates and said it had seen a significant increase in orders for servers to run AI networks. Earnings, excluding some items, will be about $9.40 a share in the fiscal year ending in January 2026, an increase from a February
[2]
Dell warns 'nonlinear' demand for AI servers may 'persist'
Dell has confirmed an order backlog of $14.4 billion for AI optimized servers, yet it is tempering investors' expectations for future sales by talking about demand being lumpy and dependencies in the pipeline. The Texas-based IT giant is one of the chief beneficiaries of the AI datacenter gold
[3]
Dell raises full-year profit forecast on strong AI server demand, shares rise
May 29 (Reuters) - Dell Technologies (DELL.N), opens new tab raised its annual profit forecast on Thursday, signaling growing demand for its AI-powered servers that are equipped with Nvidia's (NVDA.O), opens new tab powerful chips, sending the computer hardware maker's shares up 10% in extended
[4]
Dell shares climb after company raises full-year profit outlook on AI demand
A Dell Technologies sign is seen in Round Rock, Texas, on June 2, 2023.Brandon Bell | Getty Images Shares of Dell Technologies rose 10% on Thursday after the company raised its full-year earnings forecast and issued a stronger-than-expected forecast for the current quarter. However, Dell's
[5]
Dell's stock moves higher on strong AI server demand and bullish revenue outlook - SiliconANGLE
Dell's stock moves higher on strong AI server demand and bullish revenue outlook Dell Technologies Inc. cited strong demand for artificial intelligence servers as the reason for its extremely bullish revenue guidance today, sending its stock higher in the after-hours trading session. The company
[6]
Why These Wall Street Analysts Are More Bullish on Dell After Mixed Results
JPMorgan said Dell's outlook is improved by a clearer supply chain picture, which Nvidia's results helped illustrate this week. Dell (DELL) delivered fiscal first-quarter profits that missed analysts' estimates, but better-than-expected sales driven by growth in its AI server division prompted
[7]
Dell Stock Climbs as 'Unprecedented Demand' for AI Servers Powers Revenue Growth
Dell (DELL) reported fiscal first-quarter revenue that topped analysts' expectations, driven by growth in artificial intelligence server sales. Shares of the Nvidia (NVDA) partner rose about 4% in after-hours trading. The stock was down roughly 1% for 2025 through Thursday's close. Dell's
[8]
Dell raises annual profit forecast on strong AI server demand
Dell and Super Micro Computer have benefited from growing demand for such servers, but the high cost of producing them and tough competition have pressured margins. "We generated $12.1 billion in AI orders this quarter alone, surpassing the entirety of shipments in all of fiscal 2025 and leaving us
[9]
These Analysts Revise Their Forecasts On Dell Following Q1 Results - Dell Technologies (NYSE:DELL)
Dell Technologies Inc DELL reported mixed financial results for the first quarter on Thursday after the bell. Dell reported first-quarter revenue of $23.38 billion, beating the consensus estimate of $23.14 billion, according to Benzinga Pro. The company reported adjusted earnings of $1.55 per
[10]
Dell Q1 Earnings: Revenue Beat, EPS Miss, Company Highlights 'Unprecedented Demand' For AI-Optimized Servers - Dell Technologies (NYSE:DELL)
Dell Technologies Inc DELL reported financial results for the first quarter on Thursday after the bell. Here's a rundown of the report. Q1 Earnings: Dell reported first-quarter revenue of $23.38 billion, beating the consensus estimate of $23.14 billion, according to Benzinga Pro. The company
[11]
Dell COO Jeff Clarke: 'Unprecedented Demand' For AI Spurs Record First Quarter Server Sales
Consumer PC sales dropped 19 percent year over year, however, and Clarke said the PC refresh is lagging previous refresh cycles. Dell Technologies reported "unprecedented demand" for servers in its first quarter with $6.3 billion in server revenue - up 16 percent year over year - setting a new
[12]
Dell Wins Wall Street Praise After $12 Billion AI Server Orders, Solid Commercial PC Demand - Dell Technologies (NYSE:DELL)
Wall Street analysts raised their price targets on Dell Technologies DELL on Friday after the company reported its first-quarter results on Thursday. Dell reported first-quarter revenue of $23.38 billion, up 5%, beating the consensus estimate of $23.14 billion. The company reported adjusted
[13]
Dell's AI Server Orders Hit Record $12.1 Billion In Q1, Backlog Swells To $14.4 Billion: 'Exceptionally Strong Demand' - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Dell Technologies (NYSE:DELL)
Dell Technologies Inc. DELL reported a mixed first quarter, driven by what executives described as "exceptionally strong demand" for its AI-optimized servers. What Happened: The company reported $12.1 billion in AI server orders in the first quarter of the fiscal year 2026, surpassing the entirety
[14]
Goldman Sachs maintains buy on Dell stock with $130 target By Investing.com
On Friday, Goldman Sachs (NYSE:GS) reiterated its Buy rating on Dell Technologies Inc. (NYSE:DELL), with a steady price target of $130.00. The firm's analyst cited the strength in AI server orders and share buybacks as key factors that counterbalance a miss in earnings per share (EPS) and a reduced
[15]
Dell raises annual profit forecast on strong AI server demand
(Reuters) -Dell raised its annual profit forecast on Thursday, signaling growing demand for its AI-powered servers that are equipped with Nvidia's powerful chips. Shares of the company, whose servers are used by customers such as Elon Musk's AI startup xAI and CoreWeave, rose 2% in extended
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Dell Technologies raises its annual profit forecast due to surging demand for AI-optimized servers, with a significant backlog of $14.4 billion in AI orders.
Dell's AI-Driven Financial Surge
Dell Technologies has reported a significant boost in its financial outlook, primarily driven by the surging demand for AI-optimized servers. The company raised its annual profit forecast to $9.40 per share, up from its previous estimate of $9.30, exceeding analysts' expectations of $9.21
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. This positive outlook sent Dell's shares up by 10% in extended trading3
.Record-Breaking AI Orders and Backlog
Source: Market Screener
The company's AI-related business has seen unprecedented growth. Dell reported $12.1 billion in AI orders for the first quarter alone, surpassing the entire shipments of the previous fiscal year. This surge has resulted in a substantial backlog of $14.4 billion in AI server orders
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. Dell's COO Jeff Clarke emphasized the scale of this demand, stating, "We love where the backlog is. It's healthy"2
.AI Infrastructure and Market Position
Dell has positioned itself as a prime infrastructure provider for the AI datacenter boom, leveraging its close ties with Nvidia, the leading supplier of GPU accelerator technology
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. The company expects to ship more than $7 billion worth of AI systems in the current quarter, significantly contributing to its strong revenue guidance of $28.5 billion to $29.5 billion4
.Financial Performance and Segment Breakdown
Source: Investopedia
For the first quarter of fiscal 2026, Dell reported revenue of $23.38 billion, a 5% increase year-over-year
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. The Infrastructure Solutions Group, which includes AI servers, saw a 12% revenue increase to $10.3 billion. Within this group, servers and networking revenue grew by 16%2
.Challenges and Market Dynamics
Despite the strong demand, Dell cautioned about the "nonlinear" nature of the AI server market. Clarke highlighted the complexities involved, including datacenter construction, power provisioning, and cooling infrastructure setup
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. The company also faces pricing pressure in its PC business, with consumer PC revenue down 19%5
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Industry Impact and Competition
Source: CNBC
Dell's success in the AI server market contrasts with some of its competitors. HP Inc. recently missed earnings expectations and cut its annual forecast, while NetApp issued soft revenue guidance
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. This divergence underscores the critical role of AI infrastructure in the current tech landscape.Future Outlook and Investor Response
Dell maintains its full-year revenue forecast of approximately $103 billion, aligning with analyst expectations
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. The company's strong performance and optimistic outlook have been well-received by investors, with the stock showing resilience in a challenging market environment5
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