This article first appeared on GuruFocus.
Dell Technologies (NYSE:DELL) is riding a massive AI wave right now, telling investors it’s on track to ship roughly $25 billion in AI servers this year a figure that shows how quickly companies are trying to build out their AI infrastructure. Q3 was another breakout moment. Dell said customers ordered $12.3 billion worth of AI servers in just one quarter, pushing its AI backlog to a record $18.4 billion.
COO Jeff Clarke sounded almost energized as he walked through what’s happening. He said Dell’s AI racks are usually up and running within 24 to 36 hours of being delivered, which is a big reason customers keep coming back. In his words, demand is still way ahead of supply, and the pressure to scale AI systems is only growing.
Interim CFO David Kennedy added that Q3 revenue hit $27 billion, up 11%, while EPS jumped 17% to $2.59. A healthier mix of AI-heavy hardware helped lift profits, too.
For Q4, Dell is guiding for $31 billion$32 billion in revenue as its infrastructure unit continues to explode alongside the AI rush. Dell is becoming a central player in the global scramble for AI compute. Investors will watch how fast Dell converts its giant backlog into shipments.