Dell Technologies has increased its annual revenue and profit forecasts, driven by surging demand for its AI-optimized servers powered by Nvidia chips. The company reported a 38% increase in its Infrastructure Solutions Group's revenue, reaching a record $11.65 billion in Q2 2024. Dell’s AI servers, designed to handle the intense computational demands of AI systems, contributed significantly to this growth.
Chief Operating Officer Jeff Clarke highlighted the growing opportunity in "sovereign AI" and noted the company’s strong relationships with governments as a key advantage. Dell's annual revenue forecast has been raised to between $95.5 billion and $98.5 billion, up from the previous range of $93.5 billion to $97.5 billion. Additionally, the company increased its adjusted profit per share forecast to $7.80.
While demand for AI servers surged, Dell's PC business faced challenges, with revenue in this segment falling 4% to $12.41 billion. Despite this, Dell's overall Q2 revenue rose 9% to $25.03 billion, surpassing analyst expectations. Dell's stock has risen 45% this year, reflecting investor confidence in the company's AI-driven growth strategy.
Chief Operating Officer Jeff Clarke highlighted the growing opportunity in "sovereign AI" and noted the company’s strong relationships with governments as a key advantage. Dell's annual revenue forecast has been raised to between $95.5 billion and $98.5 billion, up from the previous range of $93.5 billion to $97.5 billion. Additionally, the company increased its adjusted profit per share forecast to $7.80.
While demand for AI servers surged, Dell's PC business faced challenges, with revenue in this segment falling 4% to $12.41 billion. Despite this, Dell's overall Q2 revenue rose 9% to $25.03 billion, surpassing analyst expectations. Dell's stock has risen 45% this year, reflecting investor confidence in the company's AI-driven growth strategy.