Dell Technologies is cashing in on the artificial intelligence gold rush—and in a big way. The company just lifted its full-year profit forecast on the back of explosive growth in demand for AI servers, highlighting its growing role as a key infrastructure provider for the AI-driven future.
In its latest quarterly update, Dell revealed it had secured a staggering $12.1 billion in AI server orders, far surpassing what it delivered across the entirety of the previous fiscal year. This surge in demand has prompted the company to revise its earnings projection to approximately $9.40 per share for the fiscal year ending January 2026—well above earlier expectations and beating Wall Street estimates.
According to Dell’s Chief Operating Officer Jeff Clarke, the momentum isn’t just a one-off—it’s a sign of what’s coming. With an AI backlog already reaching $14.4 billion, Dell expects that even more revenue will materialize in upcoming quarters. Clarke described the demand as “unprecedented,” fueled by clients building advanced and large-scale AI systems. The bottleneck, for now, lies in physical infrastructure, as customers await the completion of power, cooling, and data center facilities needed to deploy Dell’s cutting-edge servers.
AI Momentum Translates to Strong Sales
For the quarter ending May 2, Dell reported $23.4 billion in revenue—a solid 5% uptick from the same period last year and slightly above analysts’ projections. Adjusted earnings came in at $1.55 per share, which, while missing Zacks’ consensus of $1.69 per share, still represents a strong showing as the company pours resources into the AI space.
Even more impressive are Dell’s expectations for the current quarter: $2.25 in earnings per share and $29 billion in revenue, both outpacing average market forecasts.
The growing list of clients fueling Dell’s AI surge includes major players like Elon Musk’s xAI and cloud infrastructure firm CoreWeave, both of which are expanding their data centers using Dell’s top-tier servers.
To further boost shareholder value, Dell is actively repurchasing its own stock, decreasing the number of shares on the market and thereby improving earnings per share. It’s a classic move, and in this case, one that aligns with investor optimism around the company’s long-term AI vision.
A Strategic Partnership with Nvidia Puts Dell on the Supercomputing Map
Adding another feather to its AI cap, Dell recently teamed up with Nvidia to build a state-of-the-art supercomputer for the U.S. Department of Energy. The system, set to be housed at Lawrence Berkeley National Laboratory, will be a powerhouse designed to tackle some of the most complex scientific challenges—from simulating fusion energy and modeling biomolecular systems to designing advanced materials and investigating the foundations of physics.
This project reinforces Dell’s position not just as an enterprise tech provider, but as a serious player in the high-performance computing (HPC) and government research sectors.
Challenges Beyond AI
While Dell’s AI and enterprise segments are booming, not everything is smooth sailing. The consumer PC division continues to struggle, reflecting broader trends across the industry. In the last quarter, Dell’s consumer PC revenue declined by 19%, with operating income for that segment dropping 16%. Weak consumer demand, ongoing trade tensions, and lingering tariffs continue to weigh on growth.
These challenges are not unique to Dell. Competitor HP Inc. recently slashed its profit forecast, citing similar headwinds, and saw its stock fall by over 8%. Meanwhile, a U.S. court ruled that many of the tariffs imposed during the Trump administration were unlawful, yet they remain in effect as legal appeals continue.
Dell acknowledged these uncertainties, noting that its revised full-year guidance takes into account the impact of current tariffs and other known economic factors.
Bottom Line
By doubling down on AI infrastructure and aligning with powerhouse partners like Nvidia, Dell is reshaping its future around the technologies driving the next digital revolution. With a multi-billion-dollar AI backlog and a robust product roadmap, the company appears well-positioned to ride this wave for the long haul—even as it navigates a few bumps along the way.
