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Dell Raises Annual Forecasts on AI Server Demand, Shares Dip on Margin Concerns
Dell Raises Annual Forecasts on AI Server Demand, Shares Dip on Margin Concerns
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BTCCSquare news:
Dell Technologies upgraded its full-year revenue and profit projections, fueled by surging demand for its AI-optimized servers powered by Nvidia's chips. The company now anticipates $20 billion in fiscal 2026 revenue from AI server shipments, up from a prior $15 billion estimate. Clients like Elon Musk's xAI and CoreWeave drive adoption.
Despite the bullish outlook, shares dropped 4% post-market as Q3 adjusted profit guidance of $2.45/share missed consensus. The AI server boom comes with margin pressures—high production costs and intense competition offset revenue gains. Dell's raised annual revenue range of $105B-$109B and EPS of $9.55 still reflect robust enterprise tech spending.
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