Dell lifts annual forecasts on AI server sales boom

Dell raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its artificial intelligence-optimized servers that are powered by Nvidia’s advanced chips.

Shares fell around 5% in extended trading as Dell’s third-quarter profit outlook was below analysts’ estimates.

Rising demand for AI servers, capable of handling computational needs of AI workloads, is benefiting companies such as Dell and Super Micro Computer, but the high cost of producing them and tough competition have pressured margins.