Dell's AI Servers Boosting Profits
Hey, alright, so Dell, you know, the computer folks? They just gave their profit guess outta boost, which is kinda cool. Sounds like folks really want their servers that have those super-powerful Nvidia chips built for AI stuff. Like, the ones Elon Musk's AI company is using and also this other place called CoreWeave. Dell and another company, Super Micro Computer, seem to be doing pretty well with these AI servers. But, making them costs a lot, and lots of companies want a piece of the pie, so the profit margins are a bit tight, you know?
Dell's main operations guy, Jeff Clarke, spilling the beans, said they got a whopping $12.1 billion just in AI server orders this past quarter. That's actually more than all the ones they shipped in their whole last financial year! They've got a huge backlog of $14.4 billion waiting to go out. That's a lot of servers!
And get this, the U.S. Department of Energy just said they're launching a brand new supercomputer called Doudna. Guess who's tech they're using? Yup, Dell and Nvidia! Pretty neat, huh? This thing is gonna do some seriously complicated computing jobs.
Because of all this, Dell now thinks they'll make about $9.40 in adjusted profit per share for the year, which is a bit better than their old guess of $9.30. They're sticking with their original idea for total money coming in for the year though. For the next three months, they think they'll bring in somewhere between $28.5 billion and $29.5 billion. That's actually way higher than what most analysts thought, which was around $25.05 billion.
Their adjusted profit guess for the next quarter is also higher than expected, coming in at $2.25 per share compared to guesses of $2.09. In the first three months of the year, they did pretty well with money coming in, getting $23.38 billion when folks thought they'd get $23.14 billion. But, their adjusted profit in that first quarter was $1.55 per share, which was a little less than the $1.69 people were expecting.
Someone who watches these things, Shreya Gheewala, an analyst, said that maybe the profit could be a little squeezed in the short term because prices are competitive, there are some tariffs, and where things are being sold is changing. Good to keep an eye on, maybe?
Money coming in from Dell's part that does servers and stuff went up 12%. Their part that does PCs, well, that went up 5%. The whole cycle of people getting new PCs is slower now, tbh. But, Jeff Clarke did say it looks like folks are starting to switch to Windows 11 PCs, including those new AI-powered ones. So, that's something to maybe look forward to?
