Particle.news
Download on the App Store
6 ARTICLES
·
1h ago

Dell Lifts Long‑Term Growth Targets on Surging AI Server Demand

The company cites accelerating need for infrastructure that powers generative AI as it recalibrates multiyear expectations.

Image
3D printed clouds and figurines are seen in front of the Dell logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • Dell now projects compounded annual revenue growth of 7% to 9%, up from 3% to 4% previously.
  • The company raised its target for annual adjusted earnings-per-share growth to at least 15%, from 8% or better.
  • Shares rose about 6% to 7% in premarket trading following the updated outlook.
  • Management attributed the upgrade to strong demand for compute, storage and networking used to deploy AI at scale, with CEO Michael Dell emphasizing customer appetite for AI.
  • Dell positions itself as an AI infrastructure solutions leader and is a major builder of systems using Nvidia chips, as broader hardware vendors including Super Micro see AI-driven orders.