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Dell Technologies on Tuesday boosted its annual revenue forecast by US$25 billion (HK$195 billion) while also raising its profit outlook for the second time this year, driven by soaring demand for its AI servers.
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Dell's shares rose 7 percent in extended trading.
The servers, equipped with Nvidia's chips, are sought by clients including AI cloud providers Nscale and CoreWeave to build computing clusters for training and running AI models.
Dell has also protected its margins from the effects of a memory chip shortage in the industry by hiking prices of its products including personal computers.
"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 that was disrupted by a technical issue for about 10 minutes.
"Over the past 12 months, we have booked more than US$130 billion in AI server orders," he said.
Nvidia's and Super Micro's forecasts last month had bolstered investor confidence in the resilience of the AI boom.
Dell raised its annual revenue outlook to US$192 billion from US$167 billion and adjusted earnings per share forecast to US$25.50 from its earlier expectations of US$17.90.
The company, whose shares have more than tripled this year, now expects fiscal 2027 revenue for AI-optimized servers to be US$74 billion, up from its prior projection of US$60 billion.
Its second-quarter revenue rose 58 percent to a record US$47 billion, exceeding an LSEG-compiled estimate of US$44.92 billion. Adjusted earnings of US$7.04 per share topped estimates of US$4.91.
Sales at Dell's PC segment rose 20 percent, driven by commercial clients, echoing growth at HP. Clarke said the PC unit's revenue is growing at its fastest rate in five years.
Revenue from Dell's unit that includes its storage, software and server offerings jumped 89 percent. Sales from traditional servers and networking more than doubled as customers upgraded infrastructure and demand rose for CPU-based servers handling agentic workloads.
Reuters
