Dell is an important bellwether for the health of the AI infrastructure industry as one of the top vendors for systems based around Nvidia graphics processors.
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Dell
reported fiscal third-quarter earnings on Tuesday that missed Wall Street expectations for revenue, but the company forecasted a stronger-than-expected fourth quarter driven by increased AI sales.
Dell shares rose in extended trading.
Here’s how Dell did versus LSEG consensus estimates:
Dell said it now plans to ship $20 billion of AI servers in its fiscal 2026, double what it sold last year.
Analysts expect AI chip demand to remain strong
Company set to beat Wall Street expectations but analysts await projections for future demand for firm’s AI chips
Bernstein believes that Dell's AI server revenue could reach $50 billion by fiscal year 2027.
The chip maker says revenue for the three months to October jumped 62% to $57bn.
Analysts remain bullish on Nvidia given strong AI capex expected this year, healthy AI compute demand and the stock's valuation…
