Dell has confirmed an order backlog of $14.4 billion for its AI-optimized servers, but the tech giant is tempering investors’ expectations by acknowledging that demand will be “lumpy and nonlinear.” The company’s vice chair and chief operating officer, Jeff Clarke, said that the scale of these opportunities is creating variability in technology choices and associated shipments.
The AI server market has been experiencing high demand, driven by the increasing adoption of artificial intelligence (AI) in data centers. However, this growth comes with its own set of challenges, including power and cooling upgrades to support more power-hungry GPU accelerators. As a result, Dell is working on orchestrating a complex supply chain that involves coordinating thousands of parts for each server.
Despite these complexities, Clarke expressed confidence in the company’s ability to manage demand. “We love where the backlog is,” he said. “It’s healthy.” The analysts seem to agree, with Dell’s stock up after an extended trading session on Thursday.
For its fiscal 2026 first quarter, Dell reported revenue of $23.4 billion, up 5 percent on the same period last year. The company expects revenue to range between $28.5 billion and $29.5 billion in the second quarter, with full-year takings predicted to be between $101 billion and $105 billion.
The company’s growth is attributed largely to its Infrastructure Solutions Group (ISG), which saw revenue up 12 percent to $10.3 billion due to AI demand. The Servers and Networking segment also reported a 16 percent increase in revenue, while the Client Solutions Group (CSG) saw a 5 percent gain.
However, Dell’s Consumer revenue took a hit of 19 percent, with individual buyers holding off on purchasing PCs possibly due to US President Trump’s “volatile trade policies.” The company claims it has not been affected by these tariffs and maintains that it weathered the storm well.
Source: https://www.theregister.com/2025/05/30/dell_results