Michael Dell’s net worth has jumped by over $110 billion this year, helped by the ongoing artificial intelligence boom that has pushed Dell Technologies (NYSE:DELL) stock to a record high.
Bloomberg data shows that Dell, 61, who started the company in 1982, has become the fifth richest person in the world with a net worth of $250 billion. His wealth has grown by $11o billion, the highest increase after Elon Musk, who has added $284 billion because of the SpaceX (NASDAQ:SPCX) IPO.
Dell’s wealth rose this week after his company published strong financial results, which showed that its revenue jumped by 58% in the second quarter to $47 billion. This growth was driven by its Infrastructure Solutions Group whose revenue jumped by 89% to $31.8 billionl. Its AI-optimized servers made $16.4 billion, up by 100% YoY.
The Client Solutions Group’s business also continued doing well, with its revenue rising by 20% to $15 billion. This segment received a boost from the commercial business. At the same time, Dell raised its full-year revenue outlook by $25 bullion to $192 billion. Based on its recent history, chances are that its real figure will be higher than its guidance.
Dell Technologies is benefiting from the robust AI demand for its servers as top companies continue their buildup. This includes the biggest companies in the US like Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), and Amazon (NASDAQ:AMZN).
Dell’s shares have jumped by 320% this year and analysts predict that it has more upside to go as its revenue and profitability growth continues. Fox Advisors see it rising to $625, while Mark Newman, a Bernstein analyst expects it to hit $650. Evercore has a target of $575, while Goldman Sachs (NYSE:GS) see it hitting $570.
These gains would help to boost Dell’s net worth, thanks to his 40.9% stake in the company. In addition to this, he has a large stake in Broadcom (NASDAQ:AVGO), which stems from his stake in VMWare. Also, Dell has more private investments through DFO Management, which makes investments in key areas like hotels and corporate credit.
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