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Dell (DELL) shares rose more than 8% on Wednesday, adding to a 3.5% gain in the previous trading session as the server maker boosted its long-term financial outlook.
Dell in question At an investor event on Tuesday, it said it expects revenue to grow 7% to 9% annually through fiscal 2030, up from a range of 3% to 4% annually. The company estimates adjusted earnings per share will grow 15% or more annually over this time period; The previous growth forecast was 8%.
Dell executives pointed out that capital expenditures for artificial intelligence are increasing for companies investing in the infrastructure that will power the technology. This infrastructure includes Dell servers with the latest GPUs (graphics processing units) or AI chips from Nvidia (NVDA).
“The hardware is again great, and we are uniquely positioned to offer growth opportunities in both data center infrastructure and AI computing,” said company founder and CEO Michael Dell.
Wall Street analysts at firms like TD Cowen, JPMorgan (JPM) and Bank of America (BAC) increased their price targets on Dell shares, citing AI momentum.
Of course, the latest wave of spending on AI is under scrutiny as analysts debate whether firms, namely OpenAI (OPAI.PVT), can afford hundreds of billions of dollars in AI infrastructure commitments. Also concerns Circularity in artificial intelligence investments It has further increased fears of an AI bubble, and the long-term financial gains of renting AI servers are also being questioned. New report on margins of Oracle’s cloud business.
