Dell Technologies' shares rose three percent during extended trading as the firm predicted an annual profit above Wall Street projections due to cost reductions and rising demand for its AI-optimized servers.

With the help of Nvidia's potent chips, the company's AI servers are built to withstand the high processing demands of training massive language models, like those used by ChatGPT and other chatbots.

Due to intense rivalry in the AI server industry, this has increased demand for Dell and its competitors, such as Super Micro Computer.

At a time when a broad US trade tariff on China might harm businesses by driving up the cost of electronic products, the company competes with PC manufacturers like HP Inc.

Although the tariff executive orders and the ensuing government pronouncements have not yet affected Dell's pricing, the company stated that it was examining them to see how they would impact its customers.

According to statistics gathered by LSEG, the business projected fiscal 2026 adjusted earnings of $9.30 per share, which was higher than the average analyst expectation of $9.23.

The midpoint of the company's yearly sales projection, which was $103 billion, was consistent with projections.

Additionally, Dell announced a $10 billion increase in the company's authorization to repurchase shares and an 18 percent increase in its annual cash dividend.

The fourth quarter ended January 31st's revenue of $23.93 billion fell short of the $24.56 billion forecast.

It exceeded projections of $2.53 with an adjusted profit per share of $2.68.

Dell's sales from its infrastructure solutions segment - which includes its storage, software and server offerings - climbed 22 percent to $11.35 billion. Its PC-housing client solutions segment saw a one percent increase in revenue to $11.88 billion.