Dell Raises Forecasts as AI Server Demand Drives Revenue Growth and Dividend Increase

Dell Technologies reported strong demand for AI servers, driven by major tech companies investing heavily in AI infrastructure. The company expects AI server revenue to nearly double by fiscal 2027, with projected sales around $50 billion. Dell raised its sales and profit forecasts, surpassing analyst expectations, and announced a 20% dividend increase alongside a $10 billion share repurchase program. Rising chip costs pose challenges, but Dell anticipates continued growth supported by a record $43 billion order backlog.