tech
Dell shocks Wall Street with booming AI server sales. Where analysts see it headed next
Dell reported blowout fiscal first quarter results on Thursday thanks to booming AI server demand, leading many analysts to raise their price targets.
TL;DR
- Dell reported record fiscal first-quarter revenue of $43.84 billion, an 88% year-over-year increase.
- AI server revenue surged 757% to $16.1 billion, surpassing PC unit sales revenue.
- Dell raised its full-year AI-optimized server revenue forecast to $60 billion by January 2027.
- Analysts from Morgan Stanley, Bank of America, JPMorgan, Citigroup, Barclays, and Bernstein revised their price targets upwards, citing strong AI demand and Dell's execution.
- Dell's stock experienced a significant surge following the earnings announcement.
- Demand for AI servers is broad-based, extending beyond neoclouds to enterprise and sovereign customers.