Dell Stock Jumps As AI Business Lifts Long-Term Growth Outlook

Core Viewpoint - Dell Technologies has raised its long-term sales and earnings growth estimates due to increasing demand for AI computers, leading to a rise in its stock price [1][4]. Group 1: Financial Performance and Projections - Dell has increased its annual revenue growth target to 7% to 9%, up from a previous forecast of 3% to 4% [3]. - The company now expects annual adjusted earnings-per-share growth of 15% or better, nearly doubling the previous target of 8% [3]. - Dell has committed to increasing its quarterly dividend by 10% or more annually through fiscal 2030 [3]. Group 2: Market Demand and Strategic Positioning - The demand for AI solutions has resulted in revenue growth and strong cash flow, which Dell has returned to shareholders through dividends and share repurchases [2]. - The company is positioning itself to capitalize on the AI megatrend, with AI expected to grow into a $20 billion business within two years [5]. - CEO Michael Dell emphasized the massive opportunity as AI expands into businesses and governments globally [2]. Group 3: Stock Performance - Dell stock rose more than 2% to $149.52 following the announcement [4]. - The stock broke out of a cup-with-handle base at a buy point of $137.98 on September 30 [4]. - Dell reaffirmed its financial guidance for the fiscal third quarter and full year as provided on August 18 [4].