Dell Technologies Increases Revenue Forecasts Amid AI Demand Surge

2025-10-07 companies

Round Rock, Wednesday, 8 October 2025.
Dell Technologies has raised its long-term revenue growth forecast to 7-9%, driven by rising demand for AI solutions, boosting stock prices by 3.5%.

Dell’s Strategic Shift in Revenue Projections

On October 6, 2025, Dell Technologies Inc. (NYSE: DELL) announced a significant revision in its long-term revenue and profit growth forecasts during a meeting with analysts. This strategic move has propelled its stock price, which rose by 3.5% during the trading session on that day, closing at $150.87 [1][2].

The Role of AI in Dell’s Growth Strategy

Dell’s revised forecast anticipates an annual revenue growth of 7% to 9%, a notable increase from its previous projection of 3% to 4%. This adjustment reflects the company’s confidence in capitalizing on the burgeoning demand for artificial intelligence (AI) solutions, which CEO Michael Dell highlighted as a key growth driver. The company aims to expand its AI business to a $20 billion market within two years, underscoring the critical role of AI in its future growth strategy [3][4].

Financial Implications and Stock Performance

The upward revision also includes an increase in the expected growth of diluted earnings per share, now projected at 15% or better, nearly doubling from the prior estimate of 8%. Dell’s commitment to enhancing shareholder value is further evidenced by its plan to increase the quarterly dividend by 10% or more annually through fiscal 2030. These financial strategies have been well-received by the market, as evidenced by the stock’s performance [1][5].

Market and Investor Reactions

Analysts have reacted positively to Dell’s announcements, with firms like Citi maintaining a ‘buy’ rating and setting a target price of $160. Dell’s strategic focus on AI, coupled with its robust financial framework, positions it as a leader in the tech industry, particularly in AI infrastructure solutions [6][7].

Sources

revenue growth Dell Technologies