Dell's AI Server Backlog Reaches Record High of $95 Billion
Dell Technologies has seen significant growth in its Infrastructure Solutions Group (ISG) segment, driven by strong demand for artificial intelligence servers. In the second quarter of fiscal 2027, ISG revenue surged 89% year-over-year to a record $31.8 billion. The company reported an AI server backlog of $95 billion and received over $131.7 billion in orders over the past 12 months. Dell expects its fiscal 2027 AI server revenue to reach $74 billion, more than triple that from fiscal 2026. Goldman Sachs forecasts the global AI server market could generate up to $1.24 trillion by 2030 due to rising investments and higher average selling prices (ASPs). Dell's AI server revenue share has grown significantly—from just 5% in Q1 of 2025 to 17% in early 2026—indicating strong adoption across enterprises and cloud providers. With a forward earnings multiple lower than the Nasdaq-100 index, analysts view Dell as an attractive long-term investment. The company anticipates a 148% increase in non-GAAP EPS to $25.50 for fiscal 2027.
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Topics: AI Servers Backlog Growth Dell Technologies Infrastructure Solutions Group (ISG)