Dell Technologies Inc (NASDAQ:DELL) shares gained more than 3% in early trading on Tuesday after the computer maker lifted its long-term revenue and profit growth forecasts during its Securities Analyst Meeting.
Dell said it now expects annual revenue to grow between 7% and 9%, up from its previous forecast of 3% to 4%, driven by robust demand for artificial intelligence (AI) infrastructure.
The company noted that it also expects its full year diluted earnings per share to improve by at least 15%, compared with its previous expectations for growth of 8% or more.
“Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale,” Dell Technologies CEO Michael Dell said in a statement.
“We’re successfully translating that demand into growth and strong cash flow that we’ve largely returned to shareholders.”
Dell called the opportunity ahead for AI as being “massive”.
In August, the company said it plans to ship $20 billion of AI servers in its fiscal 2026, double what it sold last year.
Dell stock has climbed 27% year to date to its current price of $148.41.