Texas-based Dell projects significant revenue growth from AI server sales amid rising demand for the technology.
Growth in Dell's AI Server Sales
Dell forecasts a 53% increase in revenue from AI server sales this year, exceeding $15 billion. However, the company expects a drop in its adjusted gross margin due to high production costs.
Dell's Partnership with xAI
Dell has signed a deal with Elon Musk's startup, xAI, increasing the company's backlog to over $9 billion. The company is expected to deliver AI servers equipped with Nvidia Corp. GB200 semiconductors this year.
Financial Performance and Competitive Position
Dell estimates its earnings per share at $9.30 and forecasts quarterly revenue between $22.5 and $23.5 billion. The company plans to expand its market share by diversifying production and strengthening competitive positions.
Dell aims to solidify its position in the AI server market, despite challenges from production costs and stiff competition.
