By AIM · AIM Media House
Dell Technologies reported first-quarter revenue of $43.8 billion, up 88% year over year, driven by strong demand for AI-optimized servers and infrastructure systems.
The company said AI server revenue reached $16.1 billion during the quarter, surpassing the $14.6 billion generated by its PC business and marking a major shift in Dell's revenue mix. The results sent Dell shares up about 30% on May 29, adding roughly $62 billion to the company's market value, according to Reuters.
Dell also raised its full-year AI revenue forecast to $60 billion from the $50 billion target it issued in February. The quarter highlights how demand for AI infrastructure continues to reshape the hardware market.
Dell has expanded its focus beyond traditional servers and PCs through its Dell AI Factory initiative, which combines servers, storage, networking, software, and services into integrated AI deployment platforms.
The company recently expanded that strategy with new AI servers, storage systems, and automation tools aimed at enterprise deployments moving from experimentation into production environments.
AI Infrastructure Becomes Dell's Largest Growth Engine Dell's Infrastructure Solutions Group, which includes traditional servers, AI-optimized servers, storage, networking, and software, has generated more revenue than its PC business for four consecutive quarters.
According to Dell's earnings release, AI server revenue grew 757% from a year earlier. More than one-third of the company's quarterly revenue came from AI-optimized systems.
Dell also increased its full-year AI revenue outlook by $10 billion, reflecting continued demand from enterprises, cloud providers, and AI infrastructure operators.
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