Dell Forecasts Surge on AI

Dell has revised its annual revenue and profit forecasts upwards, spurred by robust demand for its AI-optimised servers, which utilise advanced Nvidia chips. The company now anticipates $20 billion in revenue from AI server shipments for fiscal year 2026, a significant increase from the previous forecast of $15 billion.

This surge is largely attributed to the Infrastructure Solutions Group (ISG), which saw a 44% year-over-year revenue increase to $16.8 billion. Within this segment, servers and networking revenue jumped by 69% to $12.9 billion. Dell's AI server pipeline continues to expand, with the company being the first to ship Nvidia's GB300 NVL72 to CoreWeave in July. The company's strategic partnerships with Nvidia and AMD, along with AI-optimised hardware like the PowerEdge XE9680L, have solidified its position in the market.

While ISG thrives, the Client Solutions Group (CSG) experienced more modest growth, with revenue up 1% year-over-year to $12.5 billion. Despite this mixed performance, Dell's strong AI server demand and strategic focus on enterprise clients position it well for long-term growth.