What happened
Dell projects its AI-optimised server revenue will double to approximately $50 billion in fiscal 2027, representing 103% growth. The company also forecasts overall annual revenue between $138 billion and $142 billion for fiscal 2027, surpassing analyst estimates of $125.54 billion. This follows a record fourth-quarter revenue of $33.4 billion. Dell, which serves over 4,000 AI server customers including xAI and CoreWeave, also increased its cash dividend by 20% and authorised an additional $10 billion for share repurchases.
Why it matters
This significant growth in AI server revenue signals a critical shift in enterprise IT spending, driven by hyperscalers and large organisations building AI infrastructure. Procurement teams and CTOs face continued pressure from rising component costs, as Dell has implemented price increases due to surging memory chip expenses and trade regulations. This aligns with recent forecasts of strong AI revenue from other hardware providers, underscoring the accelerating demand for specialised hardware.
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