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1h ago

Dell Reprices After Q1 Beat, Raises AI‑Server Target to $60 Billion

Surging GPU orders have turned Dell into a dominant AI‑server vendor, creating a $51.3 billion backlog that will strain memory, CPU and storage supply lines.

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Dell Forecasts $60B in AI Server Sales This Year
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Overview

  • Dell, which reported results on May 28, posted record Q1 FY27 revenue of $43.84 billion and adjusted EPS of $4.86, driven by $16.1 billion in AI‑server sales.
  • The company booked $24.4 billion in AI orders, ended the quarter with about $51.3 billion of AI backlog, and raised fiscal‑year AI‑server revenue guidance to roughly $60 billion.
  • Management warned that shortages of DRAM, NAND, standard processors and hard drives are causing year‑long lead times and could limit how fast backlog converts into shipments.
  • NVIDIA GPUs remain central to Dell’s server stack and investor case even as Nvidia pursues its Vera CPU initiative and faces competition, export limits and valuation scrutiny.
  • The results sent Dell shares sharply higher and forced analyst upgrades, while the episode highlights a broader shift in the market toward front‑loaded hyperscaler and enterprise spending on AI infrastructure.