{"id":5805,"date":"2025-11-26T07:04:25","date_gmt":"2025-11-26T07:04:25","guid":{"rendered":"https:\/\/prepsaret.com\/news\/?p=5805"},"modified":"2025-11-26T07:04:25","modified_gmt":"2025-11-26T07:04:25","slug":"dell-projects-stronger-growth-as-demand-for-ai-powered-servers-surges","status":"publish","type":"post","link":"https:\/\/prepsaret.com\/news\/dell-projects-stronger-growth-as-demand-for-ai-powered-servers-surges\/","title":{"rendered":"Dell Projects Stronger Growth as Demand for AI-powered Servers Surges"},"content":{"rendered":"

Dell<\/span><\/a> projected stronger-than-expected results for its upcoming fourth quarter on Tuesday, signaling that a surge in data-center spending to power artificial intelligence systems is continuing to lift demand for its high-performance server lineup.\u00a0<\/span><\/p>\n

The upbeat outlook pushed the company\u2019s shares up 4% in after-hours trading. Alongside the forecast, Dell confirmed that David Kennedy will officially take over as its chief financial officer.\u00a0<\/span><\/p>\n

The company, which now anticipates higher full-year revenue and earnings, sells AI-focused servers built with <\/span>Nvidia\u2019s advanced chips<\/span><\/a>.<\/span><\/p>\n

Growing Momentum in AI-Driven Demand<\/b><\/h2>\n

The improved guidance arrives even as investors worry about shrinking margins in the increasingly competitive AI hardware landscape.\u00a0<\/span><\/p>\n

Rivals such as Super Micro Computer have been stepping up pressure, while the cost of producing AI servers remains elevated.\u00a0<\/span><\/p>\n

By the close of its third quarter, Dell\u2019s backlog of <\/span>AI <\/span><\/a>server orders had climbed to $18.4 billion, powered by $12.3 billion in fresh commitments. During the same period, Dell shipped $5.6 billion worth of servers.<\/span><\/p>\n

Dell\u2019s customer list continues to expand. It recently secured contracts with the<\/span> U.S. Department of Energy <\/span><\/a>and Abu Dhabi\u2019s G42, and it already provides systems to <\/span>Elon Musk\u2019s xAI<\/span><\/a> and cloud-computing firm CoreWeave.\u00a0<\/span><\/p>\n

The rapid expansion of AI initiatives across the tech sector has driven up prices for dynamic random access memory and NAND storage, two critical components in modern servers.<\/span><\/p>\n

Rising Costs and Pricing Power<\/b><\/h2>\n

“We’re in a very unique time. It’s unprecedented. We have not seen costs move at the rate we’ve seen,” Chief Operating Officer Jeff Clarke said during the earnings call.\u00a0<\/span><\/p>\n

Clarke noted that the rising component prices may eventually flow through to customers but emphasized Dell will “do everything we can to mitigate that.”<\/span><\/p>\n

According to Melissa Otto, head of S&P Global Visible Alpha research, the current environment\u2014where demand for servers exceeds available supply\u2014could give Dell additional leverage to increase prices without dampening customer interest.<\/span><\/p>\n

For the fourth quarter, Dell expects revenue in the range of $31 billion to $32 billion, significantly above the $27.59 billion analysts projected based on LSEG data.\u00a0<\/span><\/p>\n

Its adjusted earnings outlook of $3.50 per share also surpassed the expected $3.21.\u00a0<\/span><\/p>\n

Dell now believes full-year revenue will reach between $111.2 billion and $112.2 billion, up from its prior range of $105 billion to $109 billion, and it has revised its adjusted annual earnings per share upward to $9.92.\u00a0<\/span><\/p>\n

Third-quarter sales came in at $27.01 billion, narrowly missing estimates of $27.13 billion, while adjusted earnings of $2.59 beat the $2.47 consensus.<\/span><\/p>\n

Read next: <\/b>Apple Restructures Global Sales Division, Cutting Select Roles in Rare Workforce Shift<\/span><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Dell projected stronger-than-expected results for its upcoming fourth quarter on Tuesday, signaling that a surge in data-center spending to power artificial intelligence systems is continuing to lift demand for its high-performance server lineup.\u00a0 The upbeat outlook pushed the company\u2019s shares up 4% in after-hours trading. Alongside the forecast, Dell confirmed that David Kennedy will officially […]<\/p>\n","protected":false},"author":5,"featured_media":5807,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[333],"tags":[],"class_list":["post-5805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology-news"],"yoast_head":"\nDell Projects Stronger Growth as Demand for AI-powered Servers Surges<\/title>\n<meta name=\"description\" content=\"Dell forecasts stronger growth as demand for AI-driven servers skyrockets, signaling a major boost for its AI infrastructure strategy.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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