Dell Raises Profit Outlook as AI Server Demand Soars

So, get this, Dell's thinkin' they're gonna make more money this year! They just upped their prediction for how much profit they'll pull in. It seems like the big reason is that folks are really wanting their special computers, the ones that are built for AI stuff and use those super brainy chips from Nvidia. Pretty cool, huh?

Dell's stock even went up a little bit after they said this. You know, companies like Elon Musk's AI company and another one called CoreWeave actually use Dell's computers. Dell and another company, Super Micro Computer, have been doing well 'cause people want these kinds of computers. But, making them costs a lot of money, and there's a lot of competition out there, so it's kinda tough on how much profit they can actually make.

Dell's Chief Operating Officer, Jeff Clarke, was like, "We got orders for $12.1 billion worth of AI stuff just in the last few months! That's more than we shipped all of last year!" He also said they have a bunch of orders lined up, like $14.4 billion worth. That's a ton of money! Oh, and get this, the U.S. government even announced they're getting a new supercomputer called Doudna, and it's gonna use Dell and Nvidia's fancy tech to do some seriously complicated tasks. Wild, right?

Because of all this, Dell now thinks they'll make about $9.40 per share in profit this year. Before, they thought it would be $9.30. They also said their total money coming in for the year will be about what they expected. For the next three months, they think they'll make between $28.5 billion and $29.5 billion, which is way more than what money people thought they'd make. They also expect to make about $2.25 profit per share for the next three months, and that's more than expected too.

Now, for the first three months of the year, they actually made more money than expected, about $23.38 billion. But, their profit per share was a little less than expected, about $1.55. Someone who looks at stocks, Shreya Gheewala, said that maybe their profit is a bit squeezed right now because companies are trying to offer lower prices, and there are also things like taxes and where they're selling stuff that can make things a bit tricky.

Dell's part of the business that sells things like storage and servers for big companies saw their money go up by 12%. Their part that sells computers for regular folks also saw their money go up, by 5%. Jeff Clarke also said that people aren't getting new computers as fast as they used to, but it seems like more people are starting to get computers with Windows 11, and those include the ones that can do AI stuff. Kinda interesting to see how that plays out, right? Maybe you've been thinking about a new computer? Idk.