Dell Technologies is set to release its fiscal year 2027 (FY27) outlook, and investors are eagerly awaiting the company’s guidance on artificial intelligence (AI) server revenue. As the primary focus remains on Dell’s AI server revenue, management’s outlook will likely be a key catalyst for the stock.

In recent years, Dell has made significant investments in its AI and machine learning (ML) capabilities, with a view to expanding its offerings in this space. The company has been aggressively pursuing partnerships and acquisitions to enhance its AI and ML capabilities, including the recent acquisition of Denali Holdings, a leader in high-performance computing solutions for AI and ML workloads.

Given Dell’s strategic focus on AI and ML, it is reasonable to expect that the company will continue to see growth in this area. However, the extent to which AI server revenue will contribute to Dell’s overall FY27 outlook remains to be seen. Management’s guidance on this front will likely provide valuable insights into the company’s prospects in this space and could have a material impact on the stock price.

Investors may also want to keep an eye on Dell’s strategic partnerships and collaborations in the AI and ML space, as these can provide additional revenue streams and help to drive growth. For example, Dell has partnered with NVIDIA to offer a range of AI-enabled solutions, including high-performance computing platforms and data center infrastructure.

Overall, while Dell’s AI server revenue outlook is likely to be a key focus for investors, it is important to consider the broader context of the company’s overall FY27 outlook and the potential impact of other factors, such as demand for its PC and server products, the competitive landscape, and macroeconomic trends.