Dell Raises Annual Revenue Outlook on Strong AI Server Sales
Dell Technologies Inc. raised its annual revenue forecast for the fiscal year ending January 2027 to $192 billion, up from a previous estimate of $167 billion and exceeding analysts' average projection of $173.8 billion. The increase is attributed primarily to strong demand in AI servers, which are expected to generate about $74 billion—more than triple the prior year's figure. This marks the fifth consecutive quarter where Dell has exceeded revenue expectations. Dell attributes its success to securing contracts for machines equipped with Nvidia Corp.'s AI chips and managing costs effectively by raising PC prices amid rising memory chip costs. The company reported a 58% increase in sales during the fiscal second quarter, ending July 31, reaching $47 billion. Additionally, Dell has built up an AI server backlog of $95 billion. The stock rose about 8% after hours following the announcement and is up more than threefold this year despite a recent decline from its peak in early August.
Topics: AI servers Nvidia chips revenue outlook