Dell boosts forecast on AI server demand
Hey peeps, lemme tell ya about Dell. So, they just upped their money-making guess for the year. Why? Looks like everyone's wanting their fancy AI servers. These bad boys got some serious power thanks to those Nvidia chips, you know?
Their stock even went up a bit after hours, which is pretty cool. Big names like Elon Musk's AI company, xAI, and CoreWeave are using Dell's servers. Dell and another company, Super Micro Computer, are doing well because people want these servers. But, they're kinda expensive to make, and there's a lot of competition, so it puts a little squeeze on how much profit they make.
Dell's boss guy, Jeff Clarke, said they got a ton of orders for AI stuff just in the last few months. Like, $12.1 billion worth! That's more than they shipped all last year, and they've still got $14.4 billion in orders waiting. That's a lot of servers, huh?
Oh, and get this, the U.S. government's energy department just announced a new supercomputer called Doudna. It's gonna use Dell and Nvidia's tech to do some super complicated computer stuff. Wowzers!
Now, about the money side of things. Dell thinks they'll make about $9.40 per share this year, which is a smidge higher than they thought before. Their guess for how much money they'll bring in overall this year stayed the same though. They also think they'll make way more money next quarter than experts thought... like, $28.5 billion to $29.5 billion! And their predicted profit for next quarter is higher than expected too.
They did beat expectations for how much money they made last quarter, which was $23.38 billion. But, their profit per share was a little less than what the pros guessed.
Someone who watches these things, Shreya Gheewala, mentioned that Dell might feel a bit of a pinch on profits soon. She said it could be because of how competitive prices are, maybe some extra costs from taxes, and where they're selling stuff.
Good news though! The part of Dell that sells servers, storage, and software saw their money go up by 12%. And the part that sells computers saw their money go up by 5%. People aren't buying new computers as fast as they used to, but it looks like folks are upgrading to Windows 11 PCs, including those cool AI ones. That's what Jeff Clarke said anyway.
It seems like pretty good news for Dell, right? What do you think about the whole AI server craze?
