Dell Boosts Profit Forecast, AI Servers Driving Growth
So, Dell's been making some big moves lately! They just upped how much money they think they'll make this year. Pretty cool, right? It seems like everyone wants their AI-powered servers, especially the ones with those super strong chips from Nvidia. Dell's shares even went up a bit after the news. Big names like Elon Musk's AI company, xAI, and CoreWeave are already using Dell's servers, so that tells you something.
Dell and another company called Super Micro Computer are both doing well because there's so much demand for these servers. But, making them costs a lot, and there's a lot of competition out there, so they have to watch their prices closely. Dell's Chief Operating Officer, Jeff Clarke, said they got a crazy $12.1 billion in orders for AI stuff just in one quarter. That's more than all the AI orders they got last year! They've got a ton of orders they still need to fill too, like $14.4 billion worth. Wow!
This all happened right after the U.S. Department of Energy announced they're getting a new supercomputer. It's gonna be called Doudna and will use fancy tech from both Dell and Nvidia to do some seriously complicated computing jobs. That's a pretty big deal!
Dell is now saying they expect to make about $9.40 per share this year, which is a little bit more than they thought before. Their prediction for how much money they'll make overall this year is staying the same, though. For the next three months, they think they'll bring in between $28.5 billion and $29.5 billion. That's actually way more than what most analysts were expecting, who figured it would be closer to $25.05 billion. Dell also thinks they'll make about $2.25 in profit per share for the next quarter, which is also higher than the $2.09 analysts predicted.
In the first three months of the year, Dell actually made a bit more money than expected, bringing in $23.38 billion instead of the $23.14 billion that was guessed. However, their profit per share was a little less than expected, coming in at $1.55 instead of $1.69. One expert, Shreya Gheewala, mentioned that Dell might have a bit of pressure on their profits soon because of things like competitive prices and where they're selling things. Their part of the business that sells servers, storage, and software did really well, growing by 12%. The part that sells PCs also grew, but by a smaller amount, like 5%. Jeff Clarke also said that people aren't buying new PCs as fast as they used to, but he is seeing signs that people are starting to get PCs with Windows 11, including the ones with AI built in. What do you think about all this tech stuff?
