Dell Raises Forecasts as Demand Surges For AI Servers

Dell Technologies has raised its annual revenue and profit forecasts, buoyed by strong demand for its AI-optimized servers powered by Nvidia's advanced chips, Reuters reported.

Dell's Infrastructure Solutions Group, which includes Nvidia-powered servers, saw revenue increase by 38% to a record $11.65 billion in the second quarter. I Photo: Eustress Wikimedia Commons

Shares in Dell surged over 5% in extended trading early Friday. Dell's Infrastructure Solutions Group, which includes Nvidia-powered servers, saw revenue increase by 38% to a record $11.65 billion in the second quarter.

These servers are engineered to meet the intense computational demands of AI systems, including training large language models (LLMs).

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," said Chief Operating Officer Jeff Clarke on a post-earnings call.

Clarke also highlighted an emerging opportunity in "sovereign AI," leveraging Dell's strong relationships with governments worldwide.

Nvidia, on Wednesday, noted that nations building AI models in their own languages were turning to its chips, contributing low double-digit billions to its revenue in the financial year ending in January 2025.