Dell's AI Strength and Demand Recovery Drive Full-Year Forecast Increase

Dell Technologies has raised its full-year revenue and profit forecasts, citing the benefits of the artificial intelligence (AI) boom and stabilizing demand for computer hardware and server products. The company expects a boost in demand for its PowerEdge servers and generative AI designs with Nvidia, driven by rising investments in AI by major tech companies. Dell reported second-quarter revenue and earnings per share above analyst estimates, with its server and networking revenue increasing by 11% from the first quarter. The results highlight Dell's profitability-first approach and stand in contrast to rival HP Inc, which recently cut its annual forecast due to a slump in PC demand and weakness in China.