Dell Technologies has raised its annual profit forecast after securing a record US$12.1 billion (A$18.2 billion) in AI server orders in Q1, highlighting surging demand for high-performance infrastructure to power AI workloads.

The Texas-based company now expects adjusted full-year earnings of US$9.40 per share, up from its earlier guidance of US$9.30.

Dell also reaffirmed its full-year revenue forecast of US$103 billion, buoyed by explosive interest in its Nvidia-powered AI-optimised servers.

For the quarter ending May 2, Dell reported a 5% year-on-year revenue increase to US$23.38 billion, slightly ahead of expectations. However, adjusted earnings per share fell short at US$1.55, missing forecasts due to cost and pricing pressures.

Dell’s Infrastructure Solutions Group led the gains, with revenue up 12% to US$10.3 billion. Server and networking sales hit a Q1 record of US$6.3 billion, while operating income jumped 36%.

COO Jeff Clarke described the AI market as “unprecedented” but warned of “lumpy” deployments due to infrastructure constraints, including data centre buildouts and cooling demands.

Dell now holds a US$14.4 billion AI order backlog and expects to ship US$15 billion in AI servers this fiscal year – up from US$9.8 billion in FY25.

Dell shares rose 2% in after-hours trading.

Looking ahead, Dell expects Q2 revenue between US$28.5–$29.5 billion and adjusted EPS of US$2.25, both above consensus.

The company also revealed its role, alongside Nvidia, in building a new supercomputer for the US Department of Energy – a system set to drive breakthroughs in fusion energy and molecular modelling.

While commercial PC sales climbed 9%, consumer PC revenue slumped 19%, reflecting subdued demand and stiff competition. Despite the consumer softness, Dell doubled down on shareholder returns, spending US$2.4 billion on buybacks and dividends.