Dell raised its long-term revenue and profit growth forecasts on Tuesday, signaling robust demand for its servers that power artificial intelligence workloads, sending its shares up nearly seven per cent in premarket trading.
Insatiable demand for computing power needed to train and run generative AI products such as ChatGPT has driven strong demand for companies including Dell and Super Micro Computer.
Dell now expects compounded annual revenue growth between seven per cent and nine per cent, up from its prior forecast of three per cent to four per cent.
The company also raised its expectations for annual growth in adjusted earnings per share to at least 15 per cent, nearly double its previous target of eight per cent.
“Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale,” CEO Michael Dell said in a statement.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)
