Dell Technologies shares rallied 8% in prolonged buying and selling on Thursday after the corporate raised its full-year income and revenue forecast.

The firm forecast third-quarter income between $22.5 billion and $23.5 billion beating analysts’ estimates of $21.67 billion, in keeping with Refinitiv knowledge. Dell expects earnings per share of $1.45, plus or minus 10 cents in contrast with estimates of $1.38, Reuters reported.

For the complete 12 months, Dell Technologies now expects income between $89.5 billion and $91.5 billion, and earnings per share of $6.30, plus or minus 20 cents, the report added.

Dell’s second quarter income and EPS beat analyst estimates.

The firm’s servers and networking income throughout the second quarter rose 11% QoQ to $4.27 billion, pushed by larger demand for AI-optimized servers.

Revenue on the firm’s shopper options group (CSG) – residence to its client and enterprise PC enterprise – elevated 8% from the primary quarter to $12.94 billion.

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The improved outlook comes as the corporate benefited from the substitute intelligence (AI) growth and stabilizing demand for laptop {hardware} and server merchandise.

The firm is predicted to see a requirement enhance for its PowerEdge servers and generative AI designs with Nvidia from rising investments in AI by Big Tech firms.

“AI is already exhibiting it is a long-term tailwind, with continued demand progress throughout our portfolio,” Chief Operating Officer Jeff Clarke stated.

(With inputs from Reuters)