Dell Technologies has raised its profit forecast for the fiscal year owing to a substantial increase in demand for AI servers.
Dell's Profit Forecast
The Texas-based company now anticipates about $9.40 per share for the fiscal year ending January 2026, exceeding prior estimates and analyst predictions.
Sales Growth Amid Demand
For the three months ended May 2, Dell reported $23.4 billion in revenue, a 5% increase from the same period last year. The surge in AI server orders, particularly from clients like xAI and CoreWeave, has greatly impacted this growth.
Partnership with Nvidia and Business Challenges
Dell is partnering with Nvidia to build a supercomputer for the U.S. Department of Energy. Despite successes in the AI domain, the company faces challenges in the consumer PC market and economic uncertainties.
Dell Technologies demonstrates confidence in its future driven by the growing AI server market but also encounters several challenges in other business segments.
