Dell Doubles Growth Forecast Amid Surging AI Server Demand

Dell Technologies has significantly raised its revenue and profit growth forecasts for the next four years, driven by surging demand for AI servers. The company now projects annual revenue growth between 7% and 9%, nearly doubling its previous outlook, and expects earnings per share to grow at least 15% annually, up from an earlier estimate of around 8%. This optimistic outlook is fueled by robust sales of AI-optimized servers, with Dell's AI server business targeting $20 billion in shipments for fiscal year 2026 and having already shipped $8.2 billion in the second quarter alone. CEO Michael Dell described the AI opportunity as "massive," emphasizing strong customer demand for compute power, storage, and networking needed to deploy AI at scale. Dell's Infrastructure Solutions Group, which includes servers and storage, is expected to achieve compounded annual revenue growth of 11% to 14%, while its PC segment faces stronger competition but anticipates benefits from a PC refresh cycle. The company maintains a strong position among enterprise clients and continues to generate substantial cash flow, enabling it to invest in AI expansion and return capital to shareholders.