SynopsisUS tech giants including Alphabet and Amazon plan to spend over $700 billion on AI infrastructure ‌this year, ⁠which would ⁠drive up demand for server and data center equipment from suppliers such ​as Dell and Super Micro Computer.Dell boosted its annual revenue and profit expectations on Thursday, showing data center expansion by clients is fueling demand for its AI-optimized servers that are powered by Nvidia's powerful chips.US tech giants including Alphabet and Amazon plan to spend over $700 billion on AI infrastructure ‌this year, ⁠which would ⁠drive up demand for server and data center equipment from suppliers such ​as Dell and Super Micro Computer.These AI servers are critical for powering ​services such as ChatGPT, as they are equipped with advanced memory chips to store data and instructions, providing the immense ​computing power required for such applications.Dell said ⁠it now ‌expects AI server revenue of roughly $60 billion ​for fiscal ​2027, up from its prior expectations of $50 ⁠billion.It raised annual revenue forecast to between $165 billion and $169 ​billion, a sharp increase from its previous ​forecast of $138 billion to $142 billion.The company also lifted its annual adjusted earnings per share forecast to $17.90 from the prior view of $12.90.Dell's revenue rose 88% to $43.84 billion in the first quarter, handily beating LSEG-compiled analysts' average estimate of $35.43 billion. Its ‌adjusted EPS of $4.86 also topped estimates of $2.94.The strong results and forecast show that Dell is managing the ​memory chip ​crisis well by ⁠implementing price increases and adjusting the company's supply chain amid intense competition.Dell's quarterly revenue from its infrastructure solutions group, which includes ​its storage, software and server offerings, jumped 181% to $29 billion. Sales from the client solutions group - home to PCs - rose 17% to $14.61 billion.It also provided second-quarter revenue and adjusted profit per share forecasts that were above market estimates. ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now