Aug 30 Reuters Shares of Dell Technologies rose 4 on Friday, after robust demand for its artificial intelligencepowered servers prompted the company to raise its fullyear earnings and revenue forecasts.

Dell, which supplies servers and related infrastructure to enterprises, bolstered its AI push through a partnership with chip giant Nvidia earlier this year. With Nvidia39;s tech stack, Dell is attracting midsized customers to upgrade their servers with AI capabilities.

Dell39;s beat was entirely due to AI servers, with storage and PC revenues both coming in below consensus, Bernstein analysts wrote in a note.

They said 80 to 90 of the company39;s server customers appear to be tier 2 cloud services providers and new deal opportunities appear to be competitive bids against Super Micro Computer.

Revenue from Dell39;s infrastructure solution group, which includes sale of servers, rose 38 over the year earlier in the second quarter. Demand for AIoptimized servers, including the flagship PowerEdge XE9680, rose 23 sequentially to 3.2 billion, the company said on Thursday.

Its AI pipeline now appears to be 11 billion to 13 billion, up from an estimated 8 billion to 10 billion in the first quarter, according to Bernstein.

Overall, Dell earned 1.89 per share on an adjusted basis and posted revenue of 25.03 billion, both exceeding LSEG estimates.

At least three brokerages raised their price targets after the results. The stock has a median target price of 155, with 19 of…