Dell stock surges with boosted long-term revenue growth expectations
Dell Technologies Boosts Revenue Forecast Amid AI Demand Surge
Dell Technologies Raises Revenue Expectations
At the MWC (Mobile World Congress) in Barcelona, a captivating hologram display at Dell Technologies Inc.’s exhibit drew visitors in. Meanwhile, the company’s financial outlook also captivated investors. Dell Technologies’ shares soared by 6% in premarket trading on Tuesday, March 5, 2025, after the company announced a significant increase in its long-term revenue and profit growth expectations.
New Growth Projections for Dell
In a recent meeting with analysts, Dell revealed that it anticipates annual revenue growth between 7% and 9%, a notable leap from its previous forecast of 3% to 4% made in August. Moreover, Dell has adjusted its full-year expectations for diluted earnings per share, now predicting an increase of at least 15%, an improvement over its earlier projection of 8% growth or better.
Capitalizing on the AI Boom
Dell attributes the boost in projections to the rapid evolution of technology, with a special focus on artificial intelligence (AI). “Customers are hungry for AI and the compute, storage, and networking solutions we provide to deploy intelligence at scale,” CEO Michael Dell explained. He emphasized how this demand has been successfully converted into both growth and strong cash flow, which the company has primarily returned to its shareholders.
The Role of AI Infrastructure
With its robust engineering, deployment, ecosystem, and other services, Dell positions itself as a leader in AI infrastructure solutions. The company’s strategic moves have cemented its role in the sector.
Dell’s Strategic Partnerships
- Dell is a significant customer of Nvidia, a leading AI chip manufacturer.
- It integrates Nvidia chips into its computer systems, which are then sold to end-users.
- Notable end-users include CoreWeave, a cloud service provider, and xAI, an AI startup founded by Elon Musk.
Emegypt reported that this news highlights Dell’s strategic focus on leveraging AI technology to meet growing market demands. Stay tuned for more updates as this development unfolds.
