Dell on Thursday forecast a decline in its adjusted gross margin rate for fiscal year 2026, hit by higher costs to build artificial intelligence servers in a fiercely competitive market, while its PC business also lagged amid soft demand.

Dell said that it sold about $10 billion of AI-optimized servers in its fiscal 2025, and expects to sell about $15 billion in AI system sales this year.

Dell Technologies Inc. gave a strong outlook for sales of servers optimized for artificial intelligence, though investors remained concerned about the profitability of these products.Most Read from BloombergCuts to Section 8 Housing Assistance Loom Amid HUD UncertaintyThe Trump Administration Takes Aim at Transportation ResearchShelters Await Billions in Federal Money for Homelessness ProvidersNYC’s Congestion Pricing Pulls In $48.

Dell Technologies forecast annual profit above Wall Street estimates on Thursday, while projecting full-year revenue that was in line with market expectations, in a sign of intense jostling in the AI server market.

Dell's AI-driven growth potential highlighted. Learn why DELL stock's partnerships and valuation make it a buy, with a 64.6% upside.

Dell Technologies showcased robust earnings performance, exceeding EPS estimates despite missing revenue estimates.

Dell Technologies is nearing a deal worth more than $5 billion to provide Elon Musk's xAI with servers optimized for artificial intelligence work, Bloomberg News reported on Friday, citing people familiar with the matter.

Dell reported that it earned a net income of $1.5 billion on revenues of $23.9 billion in the quarter ending January 31, 2025.

Dell Technologies (DELL) has reported mixed fourth-quarter 2024 financial results and offered forward guidance that fell short of Wall Street