May 29 (Reuters) - Dell Technologies ( DELL ) raised its

annual profit forecast on Thursday, signaling growing demand for

its AI-powered servers that are equipped with Nvidia's ( NVDA )

powerful chips.

Companies such as Dell and Super Micro Computer ( SMCI )

have benefited from the growing demand for these servers, but

the high cost of producing them and tough competition have

pressured margins.

"We generated $12.1 billion in AI orders this quarter alone,

surpassing the entirety of shipments in all of FY25 and leaving

us with $14.4 billion in backlog," Dell's Chief Operating

Officer Jeff Clarke said.

The results follow the U.S. Department of Energy's

announcement on Thursday that it would launch a new

supercomputer, named Doudna, which will use Dell and Nvidia's ( NVDA )

advanced technology to perform complex computing tasks.

Dell now expects annual adjusted profit to be $9.40 per

share, compared with its prior forecast of $9.30 per share. The

company reiterated its annual revenue outlook.

It forecast second-quarter revenue to be between $28.5

billion and $29.5 billion, above analysts' average estimate of

$25.05 billion, according to data compiled by LSEG.

Dell's adjusted profit forecast for the second quarter of

$2.25 per share was also above estimates of $2.09.

First-quarter revenue came in at $23.38 billion, compared

with estimates of $23.14 billion.

Dell's revenue from its infrastructure solutions group,

which includes storage, software and server offerings, rose 12%

to $10.32 billion. Revenue from its client solutions group, that

houses its PC business, rose 5% to $12.51 billion.

On an adjusted basis, the company earned $1.55 per share in

the first quarter, missing estimates of $1.69.