Dell Bets on AI-Driven Server Sales Growth Amidst PC Slowdown and Chip Shortages

Dell sees its server business as the main growth engine due to AI demand, forecasting 7% revenue growth compared to 2.5% for PCs.

AI requires more powerful servers with graphics processors and high-capacity storage, driving demand.

Dell has over $2 billion in backlogged AI server orders, but is constrained by the chip shortage.

While not abandoning PCs, Dell sees less growth potential compared to servers. A new PC cycle may come as pandemic PCs age.

Dell increased profit forecasts, will prioritize share buybacks/dividends with cash flow, and plans small, accretive acquisitions rather than large deals.