"While some analysts and tech leaders have claimed the AI industry is in a bubble, Dell said the boom is still going strong because of AI companies' insatiable appetite for computing power. If customers were buying without a real need, Dell would be worried, but "we don't see that at all," he told . "In fact, we see kind of the opposite.""
"Dell said when it comes to AI, the company's customers are facing so much demand of their own they are running up against the limits of America's aging power grid. "Our customers are immediately deploying whatever infrastructure they get," he said. "The limiting factor for many of them seems to be, can they get the power into the buildings to supply the energy required.""
"The company's server-networking business grew 58% last year, Dell said. And over the next four years, the company's annual revenue growth will exceed expectations at an estimated 7%-to-9% growth clip, compared to the 3% to 4% it previously forecasted. Its headline annual earnings per share (EPS) growth-a measure of how much a company makes per share outstanding-will be 15% or better, compared with the 8% previously forecast, the company said Tuesday."
Dell Technologies' stock rose 32% in the last year as infrastructure services for AI customers such as OpenAI became more important. Server-networking business grew 58% last year. Over the next four years, annual revenue is estimated at 7%–9%, above previous 3%–4% forecasts, and headline EPS growth is projected at 15% or better versus prior 8% guidance. AI companies' insatiable appetite for computing power is driving continued demand for servers and networking. Customers are immediately deploying acquired infrastructure and in many cases are limited by the ability to bring sufficient power into buildings.
#ai-infrastructure #data-center-power-constraints #dell-technologies-growth #server-and-networking-demand
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