Dell Technologies is facing increasingly broad supply constraints as demand for artificial intelligence infrastructure continues to outpace available components, company executives said during the company’s Sept. 1 earnings call.
The shortages, which had already affected memory, storage and CPUs, are now spreading to the racks used to house AI systems. Rack-level cooling, networking and power components are also becoming increasingly difficult to secure, according to Chief Operating Officer Jeffrey Clarke.
“Welcome to the life of a supply chain person at Dell,” Clarke told investors. “This is what we do, chasing parts. We love it.”
Customers are ordering further ahead
Dell is seeing customers place orders further in advance to make sure systems are delivered when they are needed, Clarke said. The company had already reported this trend during the previous quarter.
Large and sophisticated customers are also seeking to secure their position in the supply chain by providing Dell with demand forecasts through collaborative planning tools.
“That is probably a new phenomenon that’s happened in this demand environment today with the constrained supply,” Clarke said.
The approach reflects the growing pressure on companies to plan their AI infrastructure requirements well ahead of delivery as suppliers struggle to keep pace with demand.
Dell redirects resources toward AI infrastructure
Dell has also adjusted its own manufacturing priorities in response to the changing market. Earlier this year, the company began redirecting inputs that would otherwise have been used for PC manufacturing toward AI infrastructure.
The decision came after Dell identified signs that the PC market could weaken during the second half of the year, Clarke said.
The company is now focused on securing additional supply while managing demand and making the best possible use of the components it can obtain.
“How I think about supply, as I’m often reminded by our sales force, it’s not enough,” Clarke said. “So we are doing everything we can to get more supply. In today’s environment, that’s a very difficult task.”
AI demand lifts Dell’s revenue outlook
Dell’s shift toward supplying AI products has contributed to a significant increase in its fiscal 2027 revenue guidance.
According to Clarke, the company’s ability to redirect inputs, shape demand, plan accordingly and move products through its operations helped support a $25 billion increase in its guidance.
Earlier in the earnings call, CFO David Kenney said the increase brought Dell’s full-year revenue forecast to $192 billion.
“Our ability to increase guidance by the $25 billion is a direct reflection of our ability to optimize what’s coming in, shaping demand, planning it accordingly and getting it out the door,” Clarke said.
The comments underline the growing supply-chain challenge created by the rapid expansion of AI infrastructure, with Dell now working to secure not only computing components but also the wider hardware ecosystem required to deploy AI systems.
