Dell again lifts forecasts as AI demand powers record results

Dell, whose shares have more than tripled this year, now expects fiscal 2027 revenue for AI-optimized servers of $74 billion, up from its prior expectations of $60 billion.

"Demand is broadening across neoclouds, sovereigns, and enterprise customers, and our customer count has surpassed 6,500," Chief Operating Officer Jeff Clarke said on a post-earnings call.

"Over the past 12 months, we have booked more than $130 billion in AI server orders," Clarke said.

The company also raised its annual revenue outlook by $25 billion to $192 billion and adjusted earnings-per-share forecast to $25.50 from its earlier expectations of $17.90.

Dell Technologies DELL.N 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 company rose around 8% in extended trading.

Dell, along with smaller rival Super Micro Computer SMCI.O, is a key supplier of AI-optimized servers that are used by AI cloud providers such as Nscale and CoreWeave CRWV.O for building computing clusters.

Those servers are equipped with Nvidia's NVDA.O cutting-edge chips that provide the computing power essential for training and running AI models like OpenAI's ChatGPT.

Nvidia's and Super Micro's strong forecasts last month had bolstered investor confidence in the resilience of the AI boom. S&P Global Ratings projected that AI infrastructure spending would surpass $1.3 trillion by 2027, signaling further demand for AI equipment makers.