Investing.com -- Nvidia (NASDAQ:NVDA) held its latest GTC event last week, where the chipmaker’s CEO Jensen Huang, alongside several major announcements, recognized Dell (NYSE:DELL) for its comprehensive Nvidia AI infrastructure offerings, ranging from AI PCs to full racks with Nvidia Blackwell GPUs.
During the conference, Dell CEO Michael Dell emphasized the company’s progress in AI, mentioning the delivery of Dell AI Factory to over 2,200 customers globally and the addition of 100 new solutions.
“Mr. Dell feels that they are in the early single-digit percent adoption of the S-curve when it comes to Enterprise adoption of AI,” BofA analysts led by Wamsi Mohan said in a note.
Dell projects a significant increase in AI revenue, expecting it to reach $15 billion in fiscal year 2026 (FY26), which would be a 50% rise from $10 billion in fiscal year 2025 (FYF25).
BofA's report also highlighted that supplier checks in Asia signal a strong second-quarter ramp-up for GB200 systems and share gains for Dell.
“We expect Dell to be opportunistic in its buyback program,” analysts continued. “Mr. Dell highlighted that the company has been able to grow earnings and cash flow across economic cycles.”
Last quarter, Dell hiked its dividend by 18% and expanded its buyback authorization by $10 billion.
In terms of product margins, Michael Dell reiterated that while AI servers are margin dilutive, they contribute positively to revenue.
The company’s management has forecasted a 100 basis points year-over-year decline in overall company gross margins for FY26, but expects the Infrastructure Solutions Group (ISG) segment margins to remain stable year-over-year.
At GTC 2025, the world's first GB300 server, built by Dell, was signed by Huang. Dell showcased the PowerEdge XE8712 server, which supports up to 144 Nvidia Blackwell GPUs and integrates the Nvidia GB200 NVL4 architecture.
Additionally, Dell's Pro Max high-performance PCs, equipped with Nvidia GPUs, were highlighted, with the GB10 Blackwell superchip delivering one petaflop of computing and the GB300 Blackwell GPU providing 20 petaflops.
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