Dell Records Record AI Server Orders Exceeding Total Revenue
Shares of Dell Technologies surged following the company's fiscal second-quarter results, which revealed $60.9 billion in new orders for artificial intelligence (AI) servers—surpassing its total revenue of $47 billion across all product lines during the same period. The report highlighted a record backlog of $95 billion and an increase in AI server revenue to $16.4 billion, up 100% year over year. Management raised full-year revenue guidance by $25 billion to $192 billion and increased its AI server revenue forecast from $60 billion to $74 billion. Despite strong demand, the challenge now lies in Dell's ability to build servers quickly enough to meet expectations. The infrastructure segment saw an operating margin of 15%, up significantly year over year, but cash flow remains a concern as inventories and financing receivables have grown.
Tickers: $DELL
Topics: AI servers backlog growth Dell Technologies stock performance