The artificial intelligence infrastructure build-out is showing little sign of slowing, with Dell Technologies Inc (NASDAQ:DELL) posting record AI server orders and lifting its full-year revenue outlook by US$25 billion after demand surged during the July quarter.
Dell booked a record US$60.9 billion of AI server orders during its second quarter, generated US$16.4 billion in AI-optimised server revenue and finished the period with an extraordinary US$95 billion backlog.
The numbers provide another indication that spending on AI is extending well beyond chips themselves into the servers, storage, networking, cooling and data centre systems needed to put increasingly powerful models into production.
Revenue jumps 58%
Dell reported record quarterly revenue of US$47 billion, up 58% year-on-year, while adjusted earnings per share climbed 203% to US$7.04.
Its Infrastructure Solutions Group was the standout, with revenue rising 89% to US$31.8 billion.
AI-optimised server revenue doubled to US$16.4 billion, while traditional servers and networking jumped 122% to US$10.5 billion and storage revenue increased 26% to US$4.9 billion.
The strength prompted Dell to raise its full-year revenue forecast from US$167 billion to US$192 billion, representing expected growth of 69%.
Its forecast for AI-optimised server revenue was also increased from US$60 billion to US$74 billion, which would represent a three-fold year-on-year increase.
Dell shares rallied around 8% in after-hours trading following the result after dropping during the regular session.