Dell's AI Server Boom: Big Orders, Higher Profit Guess
Hey, so Dell just dropped some news that got their shares jumping! They're feeling pretty good about how much money they'll make this year. Why? Well, turns out folks really want those fancy servers that have Nvidia's super powerful chips. These AI-powered servers are a big deal right now.
Companies like Dell and Super Micro Computer are seeing a lot of demand for these servers. But, like, making them costs a bunch, and there's a ton of other companies trying to sell them too, which makes it tough to make a huge profit on each one.
Dell's big boss, Jeff Clarke, said they got a whopping $12.1 billion in orders for these AI things in just three months! That's more than they shipped all of last year. Crazy, right? And they've still got $14.4 billion in orders waiting to go out the door.
This all came out right after the U.S. government announced they're building this new supercomputer called Doudna. It's gonna use Dell and Nvidia's tech to do some seriously complex stuff. Pretty cool, huh?
Because things are looking up, Dell now thinks they'll make about $9.40 per share this year, which is a little more than they thought before. They're sticking with their guess for how much money they'll make overall though. For the next few months, they're expecting to bring in between $28.5 billion and $29.5 billion. That's actually way more than what the money experts were guessing, which was only around $25.05 billion.
Their guess for how much profit they'll make per share next quarter is also higher than what the experts thought. And in the first three months of the year, they actually made more money than expected, bringing in $23.38 billion. Their business that sells storage, software, and servers saw a nice jump of 12% in money coming in. Even the part that sells PCs grew by 5%! Though, their adjusted profit per share in the first quarter was a bit less than expected, coming in at $1.55 instead of $1.69. Still, sounds like things are mostly going pretty well over there!
