Dell Boosts Profit Forecast on Strong AI Server Demand
Hey, so guess what? Dell Technologies just said they expect to make more money this year! Their profits are looking up. Apparently, people are really wanting those AI servers Dell makes, the ones with Nvidia's super powerful chips. That's why Dell's stock even went up a good amount after they shared the news. It went up, like, 10% after the market closed, which is kinda cool.
You know, companies like Dell and Super Micro Computer have been doing pretty well because everyone wants these servers. But you know, even though there's a lot of demand, making these things costs a lot, and there's a bunch of competition out there, so it can be tough to make a ton of profit on each one.
Dell's chief operating officer, Jeff Clarke, said something pretty interesting. He mentioned they got orders for $12.1 billion worth of AI stuff just this past quarter. That's more than they shipped in their whole last fiscal year! And they still have $14.4 billion in orders they need to get out. That's a pretty big backlog, tbh.
Also, something else happened around the same time. The U.S. Department of Energy said they're gonna build a new supercomputer called Doudna. And guess what? It's gonna use fancy tech from Dell and Nvidia to do really complicated computer things. That's pretty awesome, right?
Because of all this Good news, Dell thinks their adjusted profit for the year will be $9.40 per share. Before, they thought it would be $9.30 per share. So, a little bump up there. They said their total money coming in for the year will probably be about the same though. But for the next three months, they think they'll bring in between $28.5 billion and $29.5 billion. Most of the experts out there thought it would be closer to $25.05 billion, so that's quite a bit more than expected!
The adjusted profit they're predicting for the next three months is also higher than what the experts thought. They're saying $2.25 per share, and the experts thought it would be $2.09. So, more good news there too. For the first three months of the year, they brought in $23.38 billion, which was also a little more than the $23.14 billion people expected.
Breaking it down a bit more, the part of Dell that deals with things like storage and servers made $10.32 billion, which is an increase of 12%. And the part that sells computers, like laptops and stuff, made $12.51 billion, which is up 5%. Now, on an adjusted basis, for the first three months, they made $1.55 per share. This one was a little less than the $1.69 per share the experts thought they'd make. So, not perfect, but overall, things seem to be looking up for Dell right now. What do you think about all this AI stuff?
