Dell Stock Jumps After Company Boosts Growth Outlook on AI Demand

Oct 7 - Dell Technologies DELL shares jumped more than 3% on Tuesday after the company raised its long-term revenue and profit outlook, pointing to strong demand for artificial intelligence hardware and enterprise infrastructure.

The computer maker now expects annual revenue growth in the mid-to-high single digits over the next few years, compared with its earlier target in the low single digits. Dell also lifted its long-term adjusted earnings per share forecast to a range of $9 to $11, up from $6.50 to $7.50 previously, according to a Tuesday filing.

Executives said demand for AI-enabled servers and data center products continues to accelerate as companies invest heavily in training and deployment of large language models. The company aims to expand its share in the high-performance computing and cloud markets.

Analysts say Dell's guidance implies confidence in sustained AI spending even as broader tech demand remains uneven. The stock has gained nearly 80% this year, outperforming the Nasdaq.

The company did not update near-term guidance but reaffirmed its focus on cost control and shareholder returns through buybacks and dividends, according to the filing.