AI server demand drives Dell’s strong growth

Dell Technologies has raised its revenue and profit forecasts again, boosted by the skyrocketing demand for its AI servers. It expects $192 billion in annual revenue, up from its previous forecast of $167 billion.

Dell expects its AI-optimized server business to generate $74 billion in revenue in fiscal 2027, up from its earlier estimate of $60 billion. 

The company said it has booked more than $130 billion in AI server orders over the past 12 months.

Dell’s second-quarter revenue jumped 58% to a record $47 billion, beating analysts’ estimate of $44.92 billion.

Revenue from the infrastructure business, which includes servers, storage and networking products, surged 89%. PC sales also rose 20%.

Dell has raised prices on some products to protect profits from higher memory-chip costs. Its shares climbed 7% in after-hours trading after the announcement.