Dell Technologies (DELL) shares traded lower on Thursday. This aligned with a broader market downturn driven by surging Treasury yields. The decline occurred despite the company's recent strong performance and positive outlook. A significant surge in demand for its artificial intelligence servers fueled this outlook.
Earlier this month, Dell reported record fiscal second-quarter revenue. Revenue reached approximately $47 billion. This marked a 58% year-over-year increase. Dell attributed this growth largely to its AI server business. The AI server business booked a record $60.9 billion in orders during the quarter. This led to a $95 billion backlog.
Following its strong earnings report on September 1, Dell raised its full-year revenue forecast. The company increased the forecast by $25 billion. The new forecast stands at $192 billion. Dell's performance highlights booming demand for AI infrastructure. This positions Dell as a key player in the sector.