Dell Rockets with AI Server Demand and Nvidia Chips
So get this, Dell's making bank right now! They just told everyone they think they'll make even more money this year. Why? Well, seems like folks are really digging their servers that have those super powerful Nvidia chips inside for all that AI stuff.
Their shares even went up a little bit after the news. You know, companies like Elon Musk's AI company, xAI, and this other place called CoreWeave use Dell's servers. Dell and another company, Super Micro Computer, are doing pretty well with these servers, but it costs a bunch to make them, and there's lots of competition, so it's a bit tough on their profit margins.
Dell's COO, Jeff Clarke, said they got a crazy $12.1 billion in orders for AI stuff just in the last few months! That's more than they shipped in all of their last fiscal year, leaving them with a huge $14.4 billion in stuff they still need to send out.
Oh, and the U.S. Department of Energy just announced they're building a new supercomputer, code-named Doudna, and guess what? It's gonna use Dell and Nvidia's fancy tech to do some seriously complicated computer work. Pretty cool, huh?
Because of all this, Dell now thinks they'll make about $9.40 profit per share for the year, which is more than the $9.30 they thought before. They said their total money coming in for the year will be about the same though. For the next few months, they expect to bring in between $28.5 billion and $29.5 billion, which is actually way more than what the fancy analysts thought. They also think they'll make about $2.25 profit per share for the next quarter, also more than what the analysts predicted.
They did pretty well last quarter, bringing in $23.38 billion, beating what folks expected. But their profit per share for that quarter, at $1.55, was a little lower than the $1.69 expected. One analyst, Shreya Gheewala, mentioned that things like competing on price, taxes on imports, and where they're selling things could put a little pressure on their profits for a bit.
Dell's part of the business that sells servers and stuff like that went up by 12%, and the part that sells PCs went up by 5%. Jeff Clarke also said that even though people aren't buying new computers as fast as they used to, it looks like folks are starting to move to those new Windows 11 PCs, which include those AI-powered ones. Maybe you're thinking about getting one too? Idk.
