Shares of Dell Technologies climbed more than 3% on Tuesday after the company boosted its long-term financial guidance, signaling growing optimism about its role in powering artificial intelligence (AI) infrastructure.
The company announced the changes during a meeting with analysts, emphasizing that its revised targets reflect stronger-than-expected demand for computing, storage, and networking products used in AI deployments.
Dell said it now expects annual revenue growth of 7% to 9%, up from its previous forecast of 3% to 4%.
It also raised its projection for diluted earnings per share (EPS) growth to at least 15%, compared with its prior outlook of 8% or higher.
The updated guidance indicates the company’s confidence in translating AI-driven demand into sustainable business expansion and shareholder returns.
On Tuesday morning, Dell’s stock rose 3.82% to $151.33, making it the top performer in the S&P 500.
The company also reaffirmed its third-quarter and fiscal 2026 forecasts, signaling consistency in its near-term outlook despite heightened competition in the AI computing space.
AI infrastructure drives dell’s growth strategy
Dell’s upbeat guidance is driven by what the company described as the “unprecedented pace of change in technology”, particularly in artificial intelligence.
“Customers are hungry for AI and the compute, storage, and networking we provide to deploy intelligence at scale,” said CEO Michael Dell in a statement.
The company said its strong engineering, deployment, and ecosystem capabilities position it as a leader in AI infrastructure solutions, a rapidly expanding segment as businesses and governments adopt AI-powered systems.
Dell has become a critical supplier in the AI ecosystem, manufacturing high-performance computers that integrate chips from Nvidia, the leading AI semiconductor company.
These systems are then sold to customers such as CoreWeave, a cloud services provider, and xAI, the artificial intelligence startup founded by Elon Musk.
In its August earnings report, Dell said it expects to ship $20 billion worth of AI servers in fiscal 2026 — double the amount it sold last year.
This sharp increase underscores the rising global demand for AI hardware and the company’s growing role in supplying enterprise-grade solutions to major technology players.
Investor confidence and industry momentum
Dell’s revised outlook and focus on AI infrastructure have fueled investor enthusiasm, not just for the company but across the broader hardware sector.
Other AI-related stocks also traded higher on Tuesday: Super Micro Computer gained 3.8%, Hewlett Packard Enterprise rose 0.5%, and CoreWeave climbed 2.7%.
Michael Dell said the company is “successfully translating [AI] demand into growth and strong cash flow,” much of which is being returned to shareholders.
Dell reiterated its commitment to returning over 80% of adjusted free cash flow through a mix of dividends and stock buybacks, highlighting its balanced approach to growth and capital allocation.
As the AI revolution accelerates across industries, Dell Technologies is positioning itself as a cornerstone of the infrastructure that supports this transformation.
With its raised growth targets and expanding presence in the AI supply chain, Dell’s latest move reinforces investor confidence in its long-term strategy and underscores the growing economic influence of artificial intelligence in global technology markets.
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