Dell lifts long-term targets on AI infrastructure demand

Dell Technologies on Tuesday raised its long term growth targets, citing surging demand for servers and systems used to train and run generative artificial intelligence models, and said it expects to substantially expand AI infrastructure sales through 2026. The company updated forecasts after an analyst meeting, boosting its annual revenue growth outlook and raising its expected adjusted earnings per share trajectory through fiscal 2030.

Dell said it now expects annual revenue growth of 7 to 9 percent, up from a prior range of 3 to 4 percent, and forecast adjusted earnings per share to grow at least 15 percent annually, compared with an earlier estimate of about 8 percent. The Infrastructure Solutions Group, which sells servers, storage and networking products, is now projected to expand 11 to 14 percent per year, versus a prior 6 to 8 percent range. Shares rose more than 5 percent in early trading after the update and later hit a 52 week high as investors digested the outlook.

Executives pointed to accelerating purchases of AI-optimized systems as the main driver. Dell said it has already shipped billions of dollars of AI servers and expects those sales to reach a $20 billion...