Dell Says It Sees 'Massive' Growth Opportunity From AI

Victor Golmer / Getty Images Dell shares have gained more than 25% in 2025, though they remain well off last year's high.

Key Takeaways

Dell said Tuesday that it's boosting its long-term outlook, thanks in part to growth driven by demand for artificial intelligence. The company said it believes it is "well positioned with a leading portfolio from data center infrastructure to PCs."

Dell Technologies wants you to know it's an artificial intelligence winner.

The maker of a wide range products from AI servers to PCs said Tuesday it sees a "massive" opportunity ahead from AI, and raised its long-term outlook, pointing to growth driven by the emerging tech.

Dell (DELL) projected its annual revenue could rise 7% to 9%, up from its prior outlook of 3% to 4%, and earnings-per-share growth of 15% or better, nearly double its previous forecast of 8% or more.

"Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale. We’re successfully translating that demand into growth and strong cash flow that we’ve largely returned to shareholders,” CEO Michael Dell said in a release.

The company also committed to dividend growth of 10% or more annually through fiscal 2030, two years later than its prior commitment.

Shares of Dell jumped more than 6% to around $155 Tuesday following the news, before giving back those early gains and slipping into negative territory. (See here for more reporting from Investopedia on today's market moves.)

Why This Is Significant

While some legacy tech giants like chipmaker Intel have struggled to keep up with advances in AI, others like server maker Dell, cloud computing giant Oracle, and International Business Machines have seen strong signs of success catering to growing AI demand.

In August, Dell had posted record quarterly revenue that topped analysts estimates, which the company attributed to strong AI demand.

In a note to clients Tuesday, Citi analysts reiterated a "buy" rating and $160 target for the stock, a bit above the $153 mean of analysts surveyed by Visible Alpha, citing momentum in Dell's AI portfolio. Analysts at J.P. Morgan also suggested the server maker stands to benefit from a deal between partner Advanced Micro Devices (AMD) and ChatGPT maker OpenAI announced yesterday.

As of midday Tuesday, Dell's stock has gained 27% so far in 2025, though it remains well off its highs around $175 last year.

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