Dell soars! Full-year guidance raised above expectations, AI server sales remain strong
Dell has significantly raised its full-year sales forecast to $192 billion, surpassing analysts' predictions. AI server sales are expected to reach $74 billion, three times last fiscal year's amount, reflecting a surge in market demand for AI servers. Operating expenses as a percentage of sales have dropped to 8%, a historic low. Expected earnings per share are $25.50, far exceeding the market average forecast of $19.10. The stock jumped 9% after hours, and has more than doubled so far this year.
Author, Source: Wallstreet News
Dell significantly raises annual sales forecast by $25 billion; AI server sales expected to reach $74 billion
Dell has raised its annual sales forecast by $25 billion, exceeding analysts’ expectations. This further highlights the surging demand for servers needed to run artificial intelligence (AI) tasks.
The Texas-based company said in a statement on Tuesday that revenue for the fiscal year ending January 2027 is expected to be around $192 billion, with AI server sales reaching $74 billion. This forecast far exceeds the approximately $167 billion Dell gave in May, as well as the analysts’ average estimate of $173.8 billion.
The AI server sales forecast is three times last fiscal year’s figure. This marks the fifth consecutive quarter that Dell’s fiscal revenue forecast has exceeded market expectations.
Dell’s shares surged 9% after hours. Although the price has fallen 14% since the August 13 peak, it has still more than doubled so far this year.
Against the backdrop of explosive AI demand, Dell has not only secured server orders equipped with Nvidia AI chips, but traditional server orders have also performed strongly. The CPUs these devices contain have regained growth momentum due to their crucial role in managing AI agents and related tasks.
Meanwhile, Dell is making efforts to strictly control expenditures, including measures such as raising PC prices to cope with soaring memory chip costs. The company stated that its operating expenses are only 8% of sales, the lowest in Dell's history.
After removing certain costs, the company expects earnings per share this fiscal year to be $25.50, while the market average forecast is $19.10.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Robert Kiyosaki: $1.2 billions in debt is due to property mortgages, not bitcoin holdings
From a market cap of 10 billions to a bargain sale! GoPro will be sold to optical module company Starman for $285 million.
GoPro has announced a $285 million all-cash acquisition agreement with private optical module manufacturer Starman Optical. This merger will integrate GoPro’s imaging technology with Starman’s optical device production capacity, supporting GoPro’s transformation from a single consumer electronics brand into a US-based optical solutions provider covering AI infrastructure, defense, and commercial optics, thereby formally entering the optical module industry.
More and more data centers are being built, but job opportunities for American college students are becoming increasingly scarce.
Although more and more data centers are being built, white-collar employment opportunities have not increased accordingly. According to the latest research by the Dallas Federal Reserve, Texas—the state with the largest data center construction capacity in the U.S.—is experiencing a continued decline in job postings for positions highly exposed to AI, with a drop of about 8% in the first quarter of 2025. Meanwhile, the unemployment rate for recent college graduates has risen to “abnormally high levels.” At the same time, data from the International Labour Organization (ILO) shows that the youth unemployment rate in North America has increased from 8.3% to 9.8%.
Invex announces MXN 31.95 million subscription rights offering for investment trust certificates
Crypto prices
More
