Dell has $14BN AI server backlog, warns projects are 'nonlinear'

Dell has confirmed an order backlog of $14.4 billion for AI optimized servers, yet it is tempering investors' expectations for future sales by talking about demand being lumpy and dependencies in the pipeline.

The Texas-based IT giant is one of the chief beneficiaries of the AI datacenter gold rush, making itself a prime infrastructure provider thanks to the close links it has built with Nvidia, chief supplier of GPU accelerator kit.

"We experienced exceptionally strong demand for AI optimized servers, building on the momentum discussed in February and further demonstrating that our differentiation is winning in the marketplace," Dell vice chair and chief operating officer Jeff Clarke told investors on a call to discuss its Q1 FY26 earnings.

But while the company is profiting from making itself a one-stop AI infrastructure shop, and demand remains high, Clarke struck a note of caution.

"AI momentum continues to remain strong. That ...