Logo

Dell Boosts Full-Year Profit Outlook Amid Surging AI System Demand

Dell Technologies upgraded its full-year adjusted earnings forecast driven by booming demand for AI systems, primarily built around Nvidia's GPUs. Despite missing Q1 EPS estimates at $1.55, revenue slightly beat forecasts at $23.38 billion. The company expects Q2 adjusted EPS of $2.25 and revenue between $28.5-$29.5 billion, backed by $7 billion in AI system shipments. Dell's backlog includes $14.4 billion in confirmed AI orders. Revenue grew 5% annually, led by strong performance in servers, data storage, and PCs. Dell also accelerated its shareholder capital returns with $2.4 billion spent on buybacks and dividends.

Dell Boosts Full-Year Profit Outlook Amid Surging AI System Demand

Dell Technologies saw its shares rise in after-hours trading following an upward revision of its full-year earnings forecast and a stronger-than-anticipated outlook for the current quarter.

While Dell's fiscal first-quarter adjusted earnings per share (EPS) of $1.55 fell short of the LSEG consensus estimate of $1.69, the company's revenue of $23.38 billion slightly surpassed expectations of $23.14 billion.

Looking ahead, Dell projected adjusted EPS of $2.25 and revenue ranging between $28.5 billion and $29.5 billion for the current quarter, exceeding market expectations significantly. The company attributes this robust guidance to approximately $7 billion worth of high-margin artificial intelligence (AI) systems scheduled to ship during the quarter.

Dell, a primary vendor for Nvidia's AI graphics processing units (GPUs), reported an "unprecedented demand" for AI systems, especially among secondary cloud service providers. Currently based in Texas, the company has $14.4 billion in confirmed AI system orders in its backlog, which will be fulfilled in upcoming quarters. During the first fiscal quarter, Dell recorded $12.1 billion in confirmed AI orders, indicating a strong pipeline that will convert into revenue upon shipment. This follows Dell's February forecast anticipating over $20 billion in AI-related revenue for fiscal 2026, a substantial increase from $10 billion the previous year.

Overall, Dell's revenue rose 5% year-over-year, with expectations of an 8% increase for the fiscal year. The Infrastructure Solutions Group, which encompasses the server business, generated $10.3 billion in sales—a 12% increase—including $6.3 billion from servers and networking, and $4 billion from data storage systems.

Dell's Client Solutions Group, encompassing laptops and PCs, achieved $12.5 billion in sales, benefitting from a projected recovery in the global PC market after several years of decline.

Additionally, Dell intensified its shareholder return program during the quarter, distributing $2.4 billion through share repurchases and dividends. This compares to $2.58 billion spent on share repurchases throughout the entire fiscal year 2025, which ended in January.

Nvidia Reports Q1 Earnings Amid Export Controls and Strong AI Chip Demand
Nvidia Reports Q1 Earnings Amid Export Controls and Strong AI Chip Demand

Nvidia will report its fiscal Q1 earnings amid robust demand for AI chips and significant export controls imposed by the U.S. government. Expected to post 93 cents adjusted EPS and $43.31 billion revenue, the company faces a $5.5 billion inventory write-down due to export restrictions on Hopper AI chips. CEO Jensen Huang’s international outreach and sustained hyperscaler investments underpin Nvidia’s growth amidst a challenging geopolitical climate.

Nvidia to Introduce Budget AI GPUs for China Amid Export Restrictions
Nvidia to Introduce Budget AI GPUs for China Amid Export Restrictions

Facing US export limitations, Nvidia is set to release a more affordable AI GPU for the Chinese market by June 2025. This new chip, part of the Blackwell series, will be priced between $6,500 and $8,000, featuring scaled-down specifications such as GDDR7 memory, replacing more advanced components. Nvidia aims to maintain a foothold in China’s $50 billion data center market despite rising competition and a declining market share.

OpenAI Partners with UAE to Launch Major AI Data Center, ChatGPT Plus Pricing Unchanged
OpenAI Partners with UAE to Launch Major AI Data Center, ChatGPT Plus Pricing Unchanged

OpenAI has teamed up with the UAE to build Stargate UAE, a one-gigawatt AI computing facility in Abu Dhabi, marking a key expansion of AI infrastructure. The project involves major global tech firms and aims to integrate ChatGPT across sectors in the UAE. Despite reports, ChatGPT Plus will not be free; the premium service remains priced at $20 per month.

Elon Musk's xAI Partners With Telegram to Launch Grok Chatbot
Elon Musk's xAI Partners With Telegram to Launch Grok Chatbot

Elon Musk’s AI firm xAI has partnered with Telegram to integrate its Grok chatbot across the messaging app, accessing Telegram’s billion-plus users. The $300 million one-year agreement includes sharing half of subscription sales with Telegram and could supply valuable data for AI model development, reinforcing both firms' positions in the AI sector.

Elon Musk's xAI Partners with Telegram in $300M Deal for Grok Chatbot
Elon Musk's xAI Partners with Telegram in $300M Deal for Grok Chatbot

Elon Musk's startup xAI has signed a $300 million partnership with Telegram to deploy its Grok chatbot on the messaging platform. Telegram will also earn 50% from xAI subscription revenues generated on its platform. The collaboration aims to boost Telegram's finances and deliver advanced AI features to its over one billion users. xAI’s Grok chatbot faced recent controversies but is undergoing improvements to ensure reliability.

Netflix Chairman Reed Hastings Joins Anthropic's Board to Advance AI Ethics
Netflix Chairman Reed Hastings Joins Anthropic's Board to Advance AI Ethics

Reed Hastings, co-founder and former CEO of Netflix, has been appointed to the board of AI startup Anthropic. His extensive tech leadership experience and commitment to ethical technology development align with Anthropic’s focus on advancing AI benefits while addressing societal and safety challenges. Hastings recently contributed $50 million to an AI ethics research program at Bowdoin College, reflecting shared priorities. Anthropic aims to compete with leading AI firms like OpenAI and Google, emphasizing responsible innovation.

Salesforce Reports Strong Q1 Results and Announces $8B Informatica Acquisition
Salesforce Reports Strong Q1 Results and Announces $8B Informatica Acquisition

Salesforce exceeded fiscal first-quarter earnings and revenue estimates, driven by 7.6% year-over-year revenue growth. The company announced an $8 billion deal to acquire Informatica, its largest since the 2021 Slack acquisition. Salesforce raised full-year guidance, projecting adjusted EPS of $11.27-$11.33 and revenue up to $41.3 billion, indicating optimism despite recent market headwinds.

Meta AI Reaches One Billion Monthly Users, Plans Paid Features
Meta AI Reaches One Billion Monthly Users, Plans Paid Features

Meta CEO Mark Zuckerberg revealed that Meta AI now engages one billion monthly active users across its app ecosystem. Following the standalone app launch in April, the company plans to enhance personalization and voice features. Future monetization may include paid recommendations and subscriptions. Shareholders also voted on governance and social responsibility proposals during the meeting.

Salesforce Shares Dip Despite Strong Q1 Earnings and Raised Outlook
Salesforce Shares Dip Despite Strong Q1 Earnings and Raised Outlook

Salesforce reported a strong fiscal first quarter with adjusted EPS of $2.58 and revenue of $9.83 billion, beating estimates and raising full-year earnings and revenue guidance. However, shares fell about 6%, influenced by slight misses in margin and performance obligation growth, and concerns over its $8 billion acquisition of Informatica. Analysts cite execution risks but acknowledge stable demand and AI-driven growth.

ASML Loses $130 Billion Amid China Export Limits and U.S. Tariffs
ASML Loses $130 Billion Amid China Export Limits and U.S. Tariffs

ASML, a key semiconductor equipment manufacturer, has lost over $130 billion in value amid U.S. export restrictions to China and tariff uncertainties. Despite these setbacks, its role as the sole producer of critical EUV lithography machines ensures strong growth prospects, supported by anticipated investments from industry leaders and potential trade agreements.

DocuSign Shares Plunge 18% After Lowered Full-Year Billings Forecast
DocuSign Shares Plunge 18% After Lowered Full-Year Billings Forecast

DocuSign's shares fell sharply following a fiscal first-quarter report that beat earnings and revenue estimates but missed billings targets, prompting a lowered full-year billings outlook. Revenue grew 8% year over year to $764 million, and net income more than doubled. The company also expanded its share buyback program by $1 billion, yet investor concerns over billings persisted, causing a significant stock decline.

Apple’s AI Strategy at WWDC Could Spark a Stock Revival
Apple’s AI Strategy at WWDC Could Spark a Stock Revival

At this week’s WWDC, Apple faces mounting pressure to showcase a strong AI strategy that might revive its disappointing stock performance. While trailing rivals in AI, Apple’s loyal user base and upcoming innovations could turn the tide. Analysts remain mixed, but the company’s historical summer strength and potential new features keep investor hopes alive.

Crusoe Secures $750M to Boost AI Data Center Expansion with Nvidia Tech
Crusoe Secures $750M to Boost AI Data Center Expansion with Nvidia Tech

Denver-based Crusoe secured a $750 million credit line to fund its AI data center expansion, including Nvidia chip deployments, supporting OpenAI's $500 billion Stargate project. The capital boost follows significant fundraising rounds and a $15 billion data center joint venture, positioning Crusoe as a key player in the booming AI infrastructure market.

Nvidia Surges to Become World’s Most Valuable Company Amid AI Boom
Nvidia Surges to Become World’s Most Valuable Company Amid AI Boom

Nvidia seized the top spot as the world's most valuable company after its shares hit a record high, fueled by rising investor confidence in AI technologies. With a valuation of $3.76 trillion, Nvidia has overtaken Microsoft amid expectations of growing generative AI adoption, supported by robust chip sales powering the AI revolution. The tech sector’s momentum highlights shifting industry leadership in 2025.

Amazon Web Services Innovates Cooling Tech to Power Next-Gen Nvidia AI GPUs
Amazon Web Services Innovates Cooling Tech to Power Next-Gen Nvidia AI GPUs

As AI technologies surge, Amazon Web Services is tackling the critical challenge of cooling Nvidia's energy-demanding GPUs with its innovative In-Row Heat Exchanger. This new cooling system integrates into existing data centers, allowing AWS to offer advanced P6e computing instances packed with Nvidia's powerful GPUs. AWS’s move highlights an industry-wide shift towards custom hardware solutions aimed at balancing AI performance with environmental sustainability.

OpenAI Launches Massive AI Data Center in Norway with 100,000 Nvidia GPUs
OpenAI Launches Massive AI Data Center in Norway with 100,000 Nvidia GPUs

OpenAI is making a significant European debut by launching the Stargate AI data center in Norway, in partnership with Nscale and Aker. This ambitious project will deploy 100,000 Nvidia GPUs by 2026, powered by clean hydropower, aiming to bolster Europe’s AI infrastructure amid calls for data sovereignty and technological independence. Industry experts see this as a critical step in addressing Europe’s fragmented computing landscape and accelerating AI innovation on the continent.

US Federal Appeals Court Reinstates Trump's Tariffs Amid Legal Disputes
US Federal Appeals Court Reinstates Trump's Tariffs Amid Legal Disputes

The US Court of Appeals reinstated former President Trump's extensive tariffs after the U.S. Court of International Trade briefly blocked them, citing presidential overreach. The tariffs, targeting mostly US trading partners and focusing on goods from Canada, Mexico, and China amid fentanyl concerns, remain under legal scrutiny with responses due by early June 2025.

US Appeals Court Temporarily Allows Trump’s Emergency Tariffs to Remain
US Appeals Court Temporarily Allows Trump’s Emergency Tariffs to Remain

The US Court of Appeals has temporarily stayed a lower court ruling that struck down tariffs imposed under Trump’s emergency powers via the IEEPA. The tariffs target various foreign imports and face legal challenges from businesses and states. The appeals court's decision permits the tariffs to remain during the appeal, while analysts predict potential economic growth improvements if tariffs are lifted.