Dell Raises Long-Term Targets

Dell Technologies (NYSE: DELL) shares climbed 5% in premarket trading Tuesday after the company raised its long-term revenue and profit growth guidance during an analyst meeting.

Annual revenue growth forecast: 7%–9% (up from 3%–4%).
Annual EPS growth forecast: at least 15% (vs. prior 8%+).

AI Driving Momentum

Dell said the upgrade reflects surging demand for AI-driven compute, storage, and networking solutions.
CEO Michael Dell: “Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale. We’re successfully translating that demand into growth and strong cash flow that we’ve largely returned to shareholders.”
The company called itself the AI infrastructure solutions leader, citing its ability to deliver engineering, deployment, ecosystem, and services around AI workloads.

AI Server Demand Outlook

Dell reiterated plans to ship $20B worth of AI servers in fiscal 2026, double the previous year’s sales.
This expansion underscores Dell’s central role in the AI hardware supply chain.

Key Partnerships

Dell is a major customer of Nvidia (NASDAQ: NVDA), integrating its chips into AI servers.
End customers include CoreWeave, a rapidly growing cloud provider, and xAI, Elon Musk’s AI startup.

Investor Takeaway

The raised outlook highlights Dell’s positioning as a critical AI enabler, benefiting from rising demand for compute infrastructure. Analysts see AI servers and enterprise adoption as long-term growth drivers.