Dell raises annual forecasts on AI server demand growth
Dell increased its annual revenue and profit expectations as data center expansion fuels demand for AI-optimized servers. The company now expects AI server revenue of 60 billion dollars for fiscal 2027 while reporting a first-quarter revenue jump of 88 percent to 43.84 billion dollars.
Dell Technologies raised its annual revenue and profit forecasts late evening Thursday as AI-optimized server demand surged. Shares jumped roughly 39% in extended trading following the announcement. The hardware provider is capturing a significant portion of the $700 billion infrastructure spend planned by global tech leaders.
### AI Infrastructure Buildout Drives Record Growth The tech sector is accelerating its transition to generative AI, benefiting suppliers of high-performance hardware. Dell now expects fiscal 2027 AI server revenue to reach $60 billion, up from a previous estimate of $50 billion. This shift follows aggressive infrastructure investments by Alphabet Inc and Amazon.com Inc.
