Dell is projecting annual revenue growth of 7% to 9%, nearly doubling its previous 3% to 4% outlook, as AI demand blew past expectations.
According to Dell’s announcement, the earnings-per-share growth target is now 15% or better, almost double the prior 8% goal. In a case of nominative determinism, Dell CEO Michael Dell called the AI opportunity “massive,” with customers scrambling for compute power and networking to deploy intelligence at scale.
Neat-looking numbers
Dell’s AI server business has started to look like a money-printing machine, with targets rising quarter after quarter. The company raised its full-year AI server guidance by another $5 billion, now aiming for $20 billion for the fiscal year. During the second quarter alone, Dell shipped $8.2 billion in AI servers, according to Nasdaq last month.
The backlog tells the story, it ended at $11.7 billion, and first-half AI solution shipments already topped last year’s total, Futurum Group found in September. That is pent-up demand turning into booked business. Enterprises are racing towards AI, and Dell seems to be positioned to ride a multi-year cycle that is not slowing.
Dell’s future
Beyond the headline numbers, Dell is reshaping itself as an AI infrastructure heavyweight. The Infrastructure Solutions Group posted 44% year-over-year growth to $16.8 billion, driven by $12.9 billion from servers and networking, recent analysis shows from two months back.
Shareholder math is shifting too. Dell committed to dividend growth of 10% or more annually through fiscal 2030, extending the timeline by two years. The stock is up 27% this year, still under last year’s peak near $175. Cash generation helps, $2.5 billion in the second quarter alone, and the company is using strategic debt refinancing and solid operations to fund AI expansion while returning capital to investors.
The bigger picture
Dell’s surge is part of a bigger reset in enterprise spending that is reshaping the server market. The AI-server segment is projected to grow 55% in 2025, hitting $252 billion, and Dell is set to capture a meaningful slice alongside HPE and Lenovo, Bloomberg Intelligence reported almost a year ago.
The economics are changing on the ground. AI server racks now run up to $3 to $4 million each, compared with $1.5 to $3 million in prior generations, which pushes revenue per customer sharply higher. Dell’s pitch is a full stack, complete AI solutions, from data center infrastructure to specialized servers, which puts the company in the sweet spot of a multi-year buildout.
AI demand also helped Nvidia’s shares rise, with Huang calling this moment “the beginning of a new buildout, a new industrial revolution.”
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