Dell raises full-year forecasts on growing demand for AI-optimised servers
- The company is expected to see a demand boost from Big Tech companies for its PowerEdge servers and generative AI designs with Nvidia
- The results show that a downturn in tech spending could be drawing to a close after Cisco also beat quarterly revenue estimates
Dell Technologies raised its full-year forecast for revenue and profit on Thursday, as it benefited from the artificial intelligence (AI) boom and stabilising demand for computer hardware and server products after a months-long slump.
Shares of the Round Rock, Texas-based company rose 8 per cent in extended trading.
The results are the latest sign that a downturn in tech spending could be drawing to a close after major networking equipment provider Cisco also beat quarterly revenue estimates.
The company is expected to see a demand boost for its PowerEdge servers and generative AI designs with Nvidia from rising investments in artificial intelligence by Big Tech companies.
“AI is already showing it’s a long-term tailwind, with continued demand growth across our portfolio,” chief operating officer Jeff Clarke said.
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The company forecast third-quarter revenue between US$22.5 billion and US$23.5 billion beating analysts’ estimates of US$21.67 billion, according to Refinitiv data. Dell expects earnings per share of US$1.45, plus or minus 10 US cents compared with estimates of US$1.38.
