Dell's AI Servers Boost Profits

So, get this Dell recently boosted their yearly profit guess. Why, you ask? Well, it seems their servers, the ones powered by those super strong Nvidia chips, are really popular right now. Think companies like Elon Musk's AI company, xAI, and CoreWeave are using them. Because of this, Dell's shares went up a bit.

Now, Dell and another company, Super Micro Computer, are doing well because everyone wants these servers. But honestly, making them costs a good chunk of change, and there are lots of other companies trying to sell similar stuff, so it's a bit of a tough market.

Dell's Chief Operating Officer, Jeff Clarke, spilled the beans, saying they got a massive $12.1 billion in AI server orders just this quarter. That's more than they shipped in their whole last fiscal year! And they still have $14.4 billion worth of orders waiting to go out. Pretty wild, right?

Oh, and get this, the U.S. Department of Energy just announced they're building a new supercomputer called Doudna. It's going to use Dell and Nvidia's fancy tech to do some serious number crunching. That's kind of a big deal, tbh.

So, because of all this, Dell now figures their yearly profit will be around $9.40 per share. Before, they thought it would be $9.30. They also stuck to their original guess for how much money they'll make overall for the year. For this next quarter, they expect to make between $28.5 billion and $29.5 billion. That's way more than what the folks who crunch numbers thought, which was about $25.05 billion. Their profit guess for the next quarter is also higher than expected, around $2.25 per share compared to the guess of $2.09.

Their first quarter was pretty good too, bringing in $23.38 billion, which was a bit more than expected. But their profit for that quarter, $1.55 per share, was a little less than what people thought it would be ($1.69). One expert, Shreya Gheewala, said there might be some pressure on their profits soon because of how competitive pricing is, and maybe some other stuff like tariffs and where they're selling things.

Dell's part of the business that handles things like storage and servers saw a 12% jump in revenue. Their computer business, you know, like laptops and desktops, also went up by 5%. Jeff Clarke mentioned that people aren't buying new computers as fast as they used to, but it looks like folks are starting to move to Windows 11 PCs, including those cool new AI PCs.