Dell at Goldman Sachs Communacopia + Technology Conference: ai push

Dell Technologies presented its perspective at the Goldman Sachs Communacopia + Technology Conference 2026 on the burgeoning field of artificial intelligence (AI) and its impact on the infrastructure market. CEO Michael Dell emphasized that the industry is transitioning from traditional computing to an intelligence-driven model, arguing that AI is reshaping how businesses operate rather than just how they store or process data.

Dell noted that only around 10% to 15% of companies have a full grasp of AI's strategic importance, with many customers still in the exploratory phase of adopting AI technologies. He highlighted that the market is becoming a "multi-speed world," where adoption varies by industry and company.

The CEO pointed out that data centers are increasingly becoming value creation engines rather than cost centers, emphasizing that about 85% of enterprise data still resides on-premises, even with the prevalence of cloud computing. Dell's AI Factory model, designed to help customers deploy AI infrastructure on-premises, plays a crucial role in this transformation.

Dell reported a $9.5 billion AI server backlog at the end of the quarter, after converting $1.3 billion in orders during the previous year. PC revenue increased by 20% in the latest quarter, although unit growth was constrained by high memory costs. IP storage revenue grew by 26% in the most recent quarter, and operating expenses fell to a record low, just about 8% of sales, driven by Dell's use of AI and automation.

Michael Dell outlined several factors contributing to durable demand, including replacement cycles, sovereign AI projects, and a likely structural semiconductor shortage. He expressed confidence in Dell's long-term outlook, citing a 100% growth expectation for its traditional compute business in fiscal 2027, driven by the need to replace aging systems.

The company is leveraging internal AI applications while offering them to customers, with Dell's modernization efforts and automation reducing operating expenses to a record low. Dell also highlighted its extensive product portfolio and long-standing supply chain relationships, positioning itself as a leader in nearly every category within its addressable market.