Dell Technologies Triples AI Server Revenue Forecast to $74B as Demand Surges Past Expectations
25 Sources
[1]
Dell shares gain after strong AI server demand boosts annual forecast
Sept 2 (Reuters) - Dell Technologies' (DELL.N), opens new tab shares climbed nearly 10% in premarket trading on Wednesday, as strong demand for its AI-optimized servers powered an increase in its annual revenue and profit forecasts. AI infrastructure companies have benefited from rising demand as
[2]
Dell surges 5% after lifting fiscal 2027 forecast on AI server strength
* Dell's quarterly revenue came in above all analyst estimates. * The computer maker now sees AI server revenue tripling in the full fiscal year. Six months ago, it had been expected the total to merely double. In this article * IREN * DELL Follow your favorite stocksCREATE FREE
[3]
Dell again lifts forecasts as AI demand powers record results
Sept 1 (Reuters) - Dell Technologies (DELL.N), opens new tab on Tuesday boosted its annual revenue and profit forecasts for the second time this year, driven by soaring demand for its AI servers from technology companies pouring billions into data centers. Shares of the Round Rock, Texas-based
[4]
Dell Technologies Q2 FY27 earnings beat on AI server demand
The fiscal second quarter, which closed on July 31, saw revenue climb 58% compared with the prior year to $46.97 billion. Adjusted earnings per share came in at $7.04, up 203% from the same period a year ago. Analysts had expected $44.92 billion in revenue and $4.91 in adjusted EPS, according to
[5]
Dell's AI servers sell like hot cakes again, driving a stunning earnings beat
Dell's AI servers sell like hot cakes again, driving a stunning earnings beat Shares of the personal computer and data center server maker Dell Technologies Inc. were up more than 6% in late trading today after it reported earnings and revenue that easily beat expectations. The company reported
[6]
Dell Posts Strong Results and Hikes Its Outlook. The Stock Is Rallying
Get personalized, AI-powered answers built on 27+ years of trusted expertise. Dell Technologies shares are surging after the PC and server maker posted earnings that topped analysts' estimates and hiked its outlook, boosted by booming AI demand. Dell (DELL) shares were up 9% in premarket trading.
[7]
Dell's AI Boom: $95 billion backlog reshapes growth outlook - Dell Stock Surges as AI Backlog Hits Record $95 Billion
Dell's AI Boom: $95 billion backlog reshapes growth outlook 1/10 Dell Stock Surges as AI Backlog Hits Record $95 Billion Dell Technologies shares jumped sharply after the company reported a record AI-server backlog and raised its full-year revenue and earnings outlook. The results highlighted
[8]
Dell Says the Data Center Is No Longer a Cost Center - Dell Technologies (NYSE:DELL)
For years, companies viewed the data center as a necessary expense -- an asset to maintain, not a business advantage. Dell Technologies Inc. (NYSE:DELL) now says that mindset is changing, arguing that enterprises are increasingly treating their infrastructure as a value creator as AI adoption
[9]
Dell AI Server Momentum Accelerates With Record $60.9B In Q2 AI Orders; Backlog Hits $95B
'Our AI server momentum continues to accelerate,' says Dell Chief Operating Officer Jeff Clarke. 'We booked $60.9 billion in AI orders this quarter, the most in our history.' Dell Technologies Tuesday took its AI market momentum to new heights, reporting a record $60.9 billion in AI orders in its
[10]
Dell shares jump 11% after strong AI server demand boosts annual forecast
On Wednesday, Dell Technologies experienced a notable surge in its shares, fueled by booming demand for AI servers. Companies such as Dell and Super Micro are capitalizing on this trend, with Dell reporting an extraordinary 58% increase in second-quarter revenue, reaching an impressive $47 billion.
[11]
Dell Bets on a $1 Trillion AI Boom as AI Agents Set to Reshape Data Centers: COO Jeff Clarke Says 'Scale
Dell Technologies, Inc. (NYSE:DELL) sees a more than $1 trillion opportunity in AI infrastructure through 2030, as surging inference demand and the rise of enterprise AI agents are expected to reshape data centers. Dell's AI Infrastructure Opportunity The company's bullish outlook came during its
[12]
Dell again lifts annual forecasts as AI demand powers record results
Dell raised its annual revenue outlook to $192 billion from $167 billion and adjusted earnings per share forecast to $25.50 from its earlier expectations of $17.90. The company, whose shares have more than tripled this year, now expects fiscal 2027 revenue for AI-optimized servers to be $74
[13]
Dell Q2 Preview: Stock Got Trump Boost, Is AI Lift Next? - Dell Technologies (NYSE:DELL)
Dell Q2 Preview: Record Revenue, Strong AI Backlog Could Overshadow President Trump's Boost for Stock Dell Technologies (NYSE:DELL) is one of the best-performing stocks in 2026. The stock could go even higher depending on second-quarter financial results, which are coming Tuesday after market
[14]
Dell's AI Flywheel is Taking Shape: From AI PCs to Data-Center Infrastructure
Dell reported record second-quarter fiscal 2027 revenue of USD 47.0 billion, up 58% year over year. Diluted earnings per share reached USD 6.34, up 273%, while non-GAAP diluted earnings per share reached USD 7.04, up 203%. Cash flow from operations stood at USD 2.2 billion. The numbers show strong
[15]
Truist raises Dell stock price target to $505 on AI server backlog By Investing.com
Investing.com - Truist Securities raised its price target on Dell Technologies stock (NYSE:DELL) to $505 from $360 on Tuesday while maintaining a Hold rating. The firm cited accelerating AI orders that have driven Dell's AI server backlog to a record $95 billion, providing visibility into fiscal
[16]
KeyBanc reiterates Dell stock Sector Weight on AI growth questions By Investing.com
Investing.com - KeyBanc reiterated a Sector Weight rating on Dell Technologies Inc. (NYSE:DELL), citing strong quarterly results but questioning further upside potential. The firm noted Dell's second-quarter fiscal results were strong, with infrastructure solutions group revenue growing 89% and
[17]
Dell cheered for results that far exceeded expectations
Record numbers, boosted by AI-optimized servers... In its second fiscal quarter (ended in late July), the IT hardware maker saw its adjusted (non-GAAP) EPS triple year over year to $7.04, easily beating the $4.92 average estimate from analysts. Revenue rose by about 58% to a record $46.97bn,
[18]
Dell stock rallies 10% as soaring AI server demand prompts guidance raise By Investing.com
Investing.com -- Dell Technologies on Tuesday blew past quarterly profit expectations and comfortably beat revenue forecasts, helped by soaring demand for its artificial intelligence servers. It also bumped up its full-year top- and bottom-line guidance. Shares of the company advanced more than
[19]
Morgan Stanley raises Dell stock price target on AI infrastructure demand By Investing.com
Investing.com - Morgan Stanley raised its price target on Dell Technologies stock (NYSE:DELL) to $499 from $434 while maintaining an Equalweight rating. The stock currently trades at $425, down 8.4% over the past week, though it has surged 241% year-to-date with a market capitalization of $274.6
[20]
Piper Sandler raises Dell stock price target on AI demand strength By Investing.com
Investing.com - Piper Sandler raised its price target on Dell Technologies Inc. (NYSE:DELL) to $558 from $497 on Wednesday while maintaining an Overweight rating. The stock currently trades at $425 with a market cap of $274.61 billion, though shares have declined 8.4% over the past week despite a
[21]
Mizuho raises Dell stock price target to $600 on AI server growth By Investing.com
Investing.com - Mizuho raised its price target on Dell Technologies Inc. (NYSE:DELL) to $600 from $500 while maintaining an Outperform rating. Dell reported July quarter revenue of $47 billion and earnings per share of $7.04, above consensus estimates of $44.8 billion and $4.90. The results
[22]
Why is Dell Technologies stock surging today? By Investing.com
Investing.com -- Dell Technologies stock surged 9.4% in pre-open trading after the company posted fiscal second-quarter FY2027 results that dramatically exceeded analyst forecasts across every major financial metric. Shares moved sharply higher in extended trading after the computer maker reported
[23]
Dell Q2 FY27 slides: AI server backlog hits $95B, revenue up 58% By Investing.com
Dell Technologies (NYSE:DELL) presented its fiscal second quarter 2027 results on September 1, 2026, showcasing what management described as "compounding benefits" from its execution, competitive advantages, and broad portfolio. The company delivered record revenue of $47.0 billion, up 58%
[24]
Earnings call transcript: Dell beats Q2 2027 estimates, shares rebound after hours By Investing.com
Dell Technologies posted stronger-than-expected fiscal second-quarter results, with adjusted earnings of $7.04 a share on revenue of $47.0 billion, topping Wall Street estimates of $4.87 a share and $44.84 billion in sales. The company said revenue rose 58% from a year earlier, while net income and
[25]
BofA raises Dell stock price target on AI server demand outlook By Investing.com
Investing.com - BofA Securities raised its price target on Dell Technologies stock (NYSE:DELL) to $505 from $500 while maintaining a Buy rating. The firm expects Dell to report second-quarter fiscal 2027 results after market close on Tuesday, September 1. BofA anticipates Dell will guide
Share
Copy Link
Dell Technologies raised its annual revenue forecast by $25 billion to $192 billion and adjusted earnings per share to $25.50 from $17.90, driven by explosive AI server demand. The company now expects AI-optimized server sales to reach $74 billion for fiscal 2027, tripling earlier projections as enterprises accelerate AI infrastructure investments.
Dell Technologies Raises Annual Revenue Forecast to $192 Billion
Dell Technologies has significantly elevated its annual revenue forecast to $192 billion from $167 billion, marking the second upward revision this year as AI server demand continues to surge
1
3
. The Round Rock, Texas-based company also raised its adjusted earnings per share target to $25.50 from $17.90, crushing Wall Street's expectations of $18.92 per share2
. Dell's shares climbed nearly 10% in premarket trading following the announcement, positioning the company to add approximately $26 billion in market value1
. The stock has surged 236% year-to-date, vastly outperforming the S&P 500's 11% gain over the same period2
5
.
Source: Benzinga
Record Q2 FY27 Earnings Beat Driven by AI-Optimized Servers
Dell Technologies Q2 FY27 earnings delivered a stunning beat, with second-quarter revenue jumping 58% year-over-year to a record $47 billion, surpassing Wall Street's estimate of $44.92 billion
1
4
. Adjusted earnings per share came in at $7.04, up 203% from the prior year and significantly above the consensus estimate of $4.922
4
. Net income surged from $1.16 billion to $4.13 billion, or $6.34 per share, compared to $1.70 per share in the same quarter last year2
. This strong quarter driven by high demand was fueled primarily by the company's Infrastructure Solutions Group, which generated $31.78 billion in revenue, up 89% and exceeding the $29.61 billion consensus2
5
. AI-optimized servers alone accounted for $16.40 billion of that total, above the $16.07 billion consensus2
5
.AI Server Demand Triples Revenue Projections to $74 Billion
Dell Technologies now forecasts AI-optimized server sales to reach $74 billion for fiscal 2027, representing growth of more than 200% compared to the prior year
3
5
. Just six months ago, the company had predicted only 103% growth, and this latest revision marks a tripling of earlier projections2
5
. The AI server demand surge is driven by technology companies and hyperscalers ramping up investments in data centers to support large language models and other AI applications1
. Dell's servers, equipped with Nvidia chips, are sought by AI cloud providers including Nscale and CoreWeave for building computing clusters essential for training and running AI models1
3
. S&P Global Ratings projects that AI infrastructure spending will surpass $1.3 trillion by 2027, signaling sustained demand for AI equipment makers3
.Infrastructure Solutions Group Powers Growth Across Segments
Dell's Infrastructure Solutions Group demonstrated exceptional performance, with revenue from traditional servers and networking equipment jumping 122% to $10.53 billion
2
5
. Storage revenue increased almost 26% to $4.85 billion, benefiting from AI-driven infrastructure modernization2
5
. Chief Operating Officer Jeff Clarke noted that customers are requiring meaningful CPU compute capacity to support AI and agentic workflows, creating incremental demand for traditional servers as well5
. According to analysts at J.P.Morgan, Dell recorded $60 billion of orders and a $95 billion backlog in the quarter, underscoring the sustained AI momentum1
. Melius Research analysts highlighted that storage strength is playing a crucial role and appears sustainable, as AI is driving fundamental growth in Dell's most profitable business1
.
Source: Market Screener
Related Stories
Competitive Positioning Strengthens Against Super Micro and HPE
Dell Technologies, along with smaller rival Super Micro Computer, serves as a key supplier of AI-optimized servers to the rapidly expanding AI infrastructure market
3
5
. Following Dell's results, shares of other AI server makers including Super Micro and Hewlett Packard Enterprise rose 0.7% and 5.4%, respectively1
. Dell's shares were trading at 18.12 times expected earnings over the next 12 months, compared to 12.56 for HPE and 8.06 for Super Micro1
. During the quarter, Dell secured a $9.7 billion contract to provide software to the U.S. military, and AI-centric cloud infrastructure provider Iren agreed to purchase $1.6 billion in Dell hardware, including servers containing Nvidia chips2
. The company's competitive advantages continue to reinforce one another, according to CFO David Kennedy, who stated that Dell used these strengths to drive growth, share gains, profitability and cash generation throughout the quarter3
.Outlook Points to Sustained AI Boom Momentum
For the fiscal third quarter, Dell projected $49 billion in revenue and adjusted EPS of $6.50, implying 81% growth and significantly exceeding analysts' expectations of $41.42 billion in revenue and $4.49 per share
2
3
. Chief Operating Officer Jeff Clarke revealed that the company elevated its annual revenue guidance after raising prices to account for rising component costs5
. Forrester Research analyst Naveen Chhabra observed that Dell's results suggest enterprise AI investment is moving beyond experimentation and driving a broader infrastructure modernization cycle, with organizations discovering that deploying AI workloads requires upgrades across networking, storage, security, observability and end-user computing environments5
. Michael Dell, the company's founder, chairman and CEO, now ranks as the world's fifth richest person according to Bloomberg calculations2
5
. The AI boom shows no signs of slowing, with enterprises continuing to commit capital to AI initiatives despite growing economic uncertainty, positioning Dell Technologies to capitalize on this multi-year infrastructure buildout.
Source: Benzinga
References
Summarized by
Navi
Related Stories
Recent Highlights
1
OpenAI Pauses AI Model Training After Agents Hack Government Websites and Breach Security Protocols
Technology
2
Meta Unveils Camera-Free AI Glasses and Muse Integration Amid Privacy Debate at Connect 2026
Technology
3
AI Researchers Sound Alarm: Companies Racing Toward Self-Improving Systems Despite Existential Risks
Policy and Regulation
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
