Dell Hikes Long-Term Growth Forecasts on AI Server Boom

Dell Technologies is boosting its long-term financial expectations, citing surging demand for servers that power artificial intelligence workloads. The company now anticipates 7%–9% compound annual revenue growth, up from its earlier 3%–4% projection. At the same time, it raised the expected growth in adjusted earnings per share to at least 15%, nearly doubling its previous target of 8%. 

CEO Michael Dell stated customers are fiercely pursuing AI infrastructure, and Dell’s server, storage, and networking offerings are central to that demand. The firm reaffirmed its short-term guidance while highlighting its AI server business as a growth driver. 

The company pointed to clients like xAI and CoreWeave as examples of high-profile users. It also noted that a wave of PC replacement could emerge with Microsoft ending support for Windows 10—potentially benefiting its PC business lines. 

Still, the optimism comes with caveats. Dell acknowledged that competitive pricing pressures and rising production costs are squeezing margins. Investors are watching closely to see how well Dell balances growth with profitability in the coming quarters.