Dell Doubles Growth Estimates For Sales, Profit On Soaring AI Demand

Dell Technologies Inc. (DELL) doubled its growth estimates for sales and profit over the next two years on Tuesday, driven by soaring demand for artificial intelligence. Shares of the company rallied 4% in Tuesday's opening trade following the announcement.

Dell’s new “long-term financial framework” indicates that the company’s revenue is projected to grow at a target rate of 7% to 9%, up from its previous projections of 3% to 4%. It expects earnings per share (EPS) to grow at a rate of 15% or higher, up from previous projections of 8% or higher.

Retail sentiment on Stocktwits around Dell was in the ‘extremely bullish’ territory at the time of writing.

Explaining the AI boom that Dell is seeing, Michael Dell, the company’s founder and CEO, said that customers are “hungry” for AI and compute, as well as its storage and networking technologies. “We’re successfully translating that demand into growth and strong cash flow that we’ve largely returned to shareholders. As AI continues to expand into businesses and governments around the world, the opportunity ahead is massive,” Dell said.

The company’s COO, Jeff Clarke, stated in an interview with Bloomberg ahead of an investor event in New York that the new projections will remain in effect through 2030. “We were all wrong how big we thought the AI market was two years ago, and it’s nothing but bigger,” Clarke said.

Dell also reaffirmed its guidance for the third quarter (Q3) and the full fiscal year 2026. The company’s interim CFO, David Kennedy, stated that Dell has nearly doubled its EPS over the past five years, and the new projections indicate a continuation of this performance.

DELL stock is up 26% year-to-date and 21% over the past 12 months.

Also See: Stock Futures Trade Mixed As Investors Remain Cautious After Record Run: TSLA, AMD, APP, STZ Among Stocks To Watch

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