Dell Technologies Reports Surge in AI Orders Amid Storage Growth and Supply Constraints
Dell Technologies reported a significant surge in orders for its AI server GPU infrastructure, with $6.1 billion booked in fiscal Q2 alone—matching the total from the previous three quarters combined. This growth is part of an expanding pipeline across neocloud providers, sovereign customers, and enterprises. Beyond GPUs, traditional servers saw 122% revenue growth year-over-year, while storage grew by 26%, with Dell projecting double-digit full-year storage growth. Dell's CFO highlighted that demand for AI infrastructure is broadening into areas like inference workloads, security, and resiliency. The company also noted supply constraints in key components such as DRAM and NAND are expected to worsen next year, prompting customers to seek multiyear access agreements with suppliers. Despite these challenges, Dell anticipates margin benefits from scale, storage mix improvements, and operating efficiencies.
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Topics: AI infrastructure server revenue storage growth supply constraints