Dell's AI Push: Big Orders & Higher Profit Bets
Okay, so get this! Dell, you know, the computer folks, just upped their money guess for the year. Why? Seems like everyone wants their super cool AI servers that use those powerful chips from Nvidia. Remember Elon Musk's AI thingy, xAI? Yeah, they use 'em. Same with CoreWeave too. Dell's shares even went up a bit after the news. Pretty sweet, huh?
Dell and another company called Super Micro Computer are doing well with these servers, but making them costs a lot and there's tough competition. Dell's boss, Jeff Clarke, said they got a massive $12.1 billion in AI orders in just the last few months! That's more than they shipped in the whole previous year, and they've got a ton of orders waiting to be filled, like $14.4 billion worth. Crazy!
Oh, and guess what else? The government, like the U.S. Department of Energy, is building a new supercomputer called Doudna, and it's gonna use Dell and Nvidia's top-notch tech for some really complex stuff. That's a big deal!
So, because of all this, Dell now thinks they'll make about $9.40 per share this year, which is a little more than they thought before. They're also sticking with their sales prediction for the year. For the next few months, they think they'll bring in somewhere between $28.5 billion and $29.5 billion, and that's way more than what the money experts were guessing. Their profit guess for those months is also higher than expected.
In the first few months of the year, their sales were actually a bit better than what people thought, but their profit per share was a little less than expected. One analyst, Shreya Gheewala, mentioned that maybe there's some pressure on their profits because of how competitive things are, and stuff like tariffs and where they're selling things. But overall, their sales numbers looked strong, especially in their business for larger systems and servers, which went up 12%. Even their computer sales went up 5%, even though people aren't buying new PCs as fast as they used to. But hey, it looks like folks are starting to switch to Windows 11 PCs, including the ones with AI features!
It makes you wonder, how much faster will AI tech change things in the future?
