Dell Boosts Profit Forecast Thanks to AI Servers
Hey, so guess what? Dell, you know the computer folks, they just upped their yearly profit guess! This is a big deal because it means folks are really digging their servers that are powered by those super strong Nvidia chips. Yeah, the same chips that are in a bunch of cool stuff. Speaking of, companies like Elon Musk's AI startup xAI and CoreWeave are using Dell's servers. That's pretty neat, right?
Now, Dell and another company, Super Micro Computer, are doing pretty good because everyone wants these fancy servers. But, and this is a bit of a bummer, they cost a lot to make, and there's a lot of competition out there, so it's tough on how much money they actually make from each one.
Jeff Clarke, who's in charge of stuff at Dell, said they got a whopping $12.1 billion in orders just this past quarter. That's more than they shipped all of last year! They've got a huge pile of orders they still need to fill, like, $14.4 billion worth.
Also, the U.S. government just announced they're making a new supercomputer called Doudna. It's going to use tech from both Dell and Nvidia to do some seriously brainy computing tasks. Cool, huh?
Because of all this, Dell now thinks they'll make about $9.40 per share this year, which is a little more than their old guess of $9.30. They still expect their total sales to be about the same though. For the next three months, they think they'll make between $28.5 billion and $29.5 billion. That's actually way more than what the money experts thought they'd make, which was around $25.05 billion.
The money experts thought Dell would make $2.09 per share in the next quarter, but Dell thinks they'll make $2.25. Their sales for the first three months were $23.38 billion, which was better than the $23.14 billion expected. But, they actually made $1.55 per share in profit, which was a little less than the $1.69 the experts were guessing.
One expert, Shreya Gheewala, said that even though things are looking good, Dell might face some pressure on how much profit they make per item because of how companies are pricing things, taxes, and where they're selling stuff.
Sales for Dell's business that includes storage, software, and servers went up by 12%. Their PC business also saw a 5% jump in sales. Clarke also mentioned that people aren't buying new computers as fast as they used to, but it looks like folks are starting to switch to Windows 11 PCs, including those cool ones with AI built-in.
Have you thought about getting a new computer lately?
