Dell Technologies raised its full-year revenue forecast to between $165 billion and $169 billion. The company also increased its profit outlook as corporate spending on artificial intelligence accelerates. Shares surged as much as 39% following the announcement.
The company reported a record AI server backlog of $51.3 billion. Dell now anticipates $60 billion in annual AI server revenue. This updated forecast represents an increase from the previous $50 billion estimate.
First-quarter revenue from AI-optimized servers rose 757% year-over-year. This segment generated $16.1 billion during the period. Management noted that Dell now serves more than 5,000 AI server clients.
The results boosted shares of other hardware makers including Hewlett Packard Enterprise and Super Micro Computer. The growth underscores a broadening AI market that now includes system integrators alongside chip designers.