Dell nearly doubled its annual profit growth target to at least 15%, up from around 8%, driven by strong AI server demand

Dell Technologies announced Tuesday it expects profits to grow much faster over the next four years, banking on continued strong sales of servers used for artificial intelligence ￰0￱ computer maker nearly doubled its profit growth outlook during a meeting with financial ￰1￱ company now projects earnings per share will climb at least 15% each year, a big jump from its earlier estimate of around 8% annual ￰2￱ also boosted its revenue ￰3￱ firm said it expects yearly sales to increase between 7% and 9% over the next four ￰4￱ replaces its previous forecast of 3% to 4% ￰5￱ improved outlook comes as companies race to buy servers that handle AI programs like ￰6￱ counts Elon Musk’s AI company xAI and CoreWeave among its customers for these specialized machines.

“Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale,” said Michael Dell, the company’s chief executive, as quoted by ￰7￱ added that Dell remains in the early stages of AI adoption despite two years of ￰8￱ company’s stock went up 2% Tuesday following the ￰9￱ in the generative AI boom Dell has emerged as a major beneficiary of the AI boom . However, some investors had worried that competition and high production costs might hurt profit margins on AI ￰10￱ Bourne, who analyzes technology companies for Emarketer, said Dell holds an edge over competitors. “Dell has a volume advantage due to its scale, established supply chain, and relationships with major buyers, compared to rivals like Super Micro,” Bourne ￰11￱ company kept its predictions for the current quarter and full year ￰12￱ in August, Dell had already raised its AI server shipment target to $20 billion for fiscal year ￰13￱ reported selling roughly $10 billion worth of AI-optimized servers during fiscal ￰14￱ the current fiscal year, the company anticipates AI system sales will reach about $15 billion.

Dell’s infrastructure unit sees biggest gains The infrastructure solutions division, which handles storage, software, and servers, will see the biggest ￰15￱ expects this unit’s revenue to grow between 11% and 14% annually over the long ￰16￱ company had previously estimated growth of 6% to 8% for this division. Meanwhile, Dell’s client solutions group, which sells personal computers, faces tougher ￰17￱ company still expects this division to grow 2% to 3% ￰18￱ competition in the consumer market has created challenges for this business in recent years, though Dell maintains a strong presence selling computers to business ￰19￱ Dell said the company is successfully turning customer demand into growth and strong cash flow, which has mostly been returned to ￰20￱ higher growth targets reflect what Dell called “the unprecedented pace of change in technology,” especially in artificial ￰21￱ your free seat in an exclusive crypto trading community - limited to 1,000 members.