Dell raises long-term annual revenue, profit growth forecasts on strong AI server demand

(Reuters) -Dell raised its long-term revenue and profit growth forecasts on Tuesday, signaling robust demand for its servers that power artificial intelligence workloads, sending its shares up nearly 7% in premarket trading. Insatiable demand for computing power needed to train and run generative AI products such as ChatGPT has driven strong demand for companies including Dell and Super Micro Computer. Dell now expects compounded annual revenue growth between 7% and 9%, up from its prior forecast of 3% to 4%. The company also raised its expectations for annual growth in adjusted earnings per share to at least 15%, nearly double its previous target of 8%. "Customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale," CEO Michael Dell said in a statement. (Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)