Dell's AI Server Business Explodes: Riding the Generative AI Wave

Dell's strategic positioning in the AI server market yielded spectacular results in Q2 of fiscal 2026. Fueled by massive deals with clients like xAI and CoreWeave, and a preference for American-made hardware, Dell's AI server sales reached $8.1 billion, a 2.6x year-over-year increase. While overall server business profitability saw some compression, the robust growth in AI pushed Dell's Infrastructure Solutions Group revenue past its PC business for the first time in history. Dell forecasts at least $20 billion in AI system sales for fiscal 2026, demonstrating its ability to capitalize on the generative AI boom.