AI Servers

Dell Technologies exceeded analyst expectations for both EPS and revenue in Q2, driven by a 69% surge in server and networking revenue, including AI servers. Full-year revenue outlook was also raised. However, shares dipped in after-hours trading as Q3 EPS guidance fell short of estimates, despite higher revenue projections. The company attributed the profit forecast’s concentration in Q4 to seasonal patterns. Dell plans to double AI server shipments in FY26, emphasizing its commitment to the AI market. Storage revenue declined, while Client Solutions Group saw modest growth.

Taiwan’s manufacturing sector is undergoing a significant shift, with AI server revenue now surpassing iPhone revenue for major players. This transition, occurring in just three years, sees companies like Foxconn strategically diversifying beyond consumer electronics. Taiwan dominates AI server manufacturing, accounting for over 90% of global builds. Production value surged in 2024, with companies like Wistron and Quanta experiencing substantial revenue growth. While this transformation benefits Taiwan’s tech industry, challenges remain, including potential market share erosion and the need for more distributed global operations.