Dell Boosts Profit Forecast Thanks to AI Server Demand
So, get this: Dell totally upped their money-making prediction for the year! It seems like folks are really digging their AI servers, you know, the ones with those super-powered Nvidia chips. Dell's stock even went up a bit after the news, which is pretty cool.
Apparently, big names like Elon Musk's AI company and CoreWeave use Dell's servers. Dell and another company called Super Micro Computer are doing pretty well because everyone wants these servers. But honestly, making them is expensive, and there's a lot of competition out there, so it's a bit tight on the profit side.
Dell's main guy, Jeff Clarke, spilled the beans and said they got $12.1 billion in AI orders just this past quarter. That's way more than all the servers they shipped last year! And get this, they've still got $14.4 billion worth of orders waiting to be filled. Wowza!
This news came right after the U.S. government announced they're launching a new supercomputer. They're calling it Doudna, and guess what? It's gonna use fancy tech from Dell and Nvidia to do some seriously complex stuff. Pretty sweet, right?
Because of all this, Dell now thinks they'll make about $9.40 per share in profit this year, which is a little more than they thought before. They're also sticking to their original plan for how much money they expect to bring in overall. For the next few months, they're expecting to make between $28.5 billion and $29.5 billion, and that's actually more than what the money experts were guessing.
Their profit guess for the next quarter, $2.25 per share, is also higher than what the analysts expected. They did miss a little bit on their profit for the first three months, but they made more money in sales than people thought they would. So, a bit of a mixed bag there, I guess.
Someone who studies stocks said there might be some pressure on Dell's profits soon because of how competitive prices are, some taxes, and maybe where they're selling things. But overall, their business that sells things like storage and servers is doing well, up 12%. And their computer business is up 5%.
It seems like people aren't buying new computers as fast as they used to, but apparently, folks are starting to switch to Windows 11 PCs, especially the ones that have AI built-in. So, maybe that will help things? Idk, what do you think?
