Dell Technologies raised its annual revenue growth target to 7% to 9% as it ramps its AI infrastructure business.
The company outlined its guidance at its security analyst meeting. Dell maintained its third quarter guidance delivered when it reported second quarter earnings.
Dell said its updated annual revenue growth will be in the 7% to 9% range, up from 3% to 4%. The company also said it will raise its dividend 10% or more annually through 2030. Annual non-GAAP earnings growth will be 15% or better.
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CEO Michael Dell said, "customers are hungry for AI and the compute, storage and networking we provide to deploy intelligence at scale." He added that the AI "opportunity ahead is massive."
The company argued that it is well positioned for AI data center infrastructure as well as PCs.
In a presentation, Dell laid out the following points:
- AI is in the early stages of adoption and traditional data centers will be key to AI deployments.
- AI inference will support growth going forward and enterprises will increasingly go with low-cost inference at the edge and disaggregated architectures. PCs will also play a role in edge AI.
- Traditional server and storage growth will be driven by AI workloads.
