# Dell Urges Earlier AI Hardware Planning Amid Component Shortages

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/37621
Published: 2026-10-22T07:49:13.000Z
Updated: 2026-10-22T07:49:13.000Z
Section: Technology

> Late procurement requests can leave less time to coordinate deliveries. Dell ended fiscal Q2 with $95 billion in AI backlog.

Dell Technologies is urging enterprise buyers to involve the company earlier in artificial intelligence infrastructure projects as component constraints make delivery planning harder. The message came at an Oct. 20 symposium, with Dell’s AI backlog at $95 billion at the end of its latest fiscal quarter.

David Schmoock, Dell’s senior vice president of global revenue operations, described late procurement requests as a missed opportunity to coordinate supply and deployment schedules. “I think it is a period of turbulence. I think people are waking up to say we need to plan longer-term horizons,” Schmoock said.

He gave 60, 90 and 120 days as possible delays when a buyer and Dell have not planned together. Such delays can affect project costs and business operations. Customers whose businesses depend heavily on technology, including high-frequency traders, had been among the first to secure delivery schedules.

The supply constraints extend beyond AI accelerators. Jeff Clarke, Dell vice chairman and chief operating officer, described shortages in DRAM, NAND, CPUs, disk drives and optical components on Sept. 1. Dell also faced pressure to build cooling and power systems for AI racks. “Demand outran supply last quarter. Demand outran supply this quarter,” Clarke said.

For fiscal Q2 2027, which ended July 31, Dell booked $60.9 billion in AI orders and reported $16.4 billion in AI server revenue. It ended the quarter with $95 billion in AI backlog. The orders and revenue are quarter measures; the backlog is a quarter-end figure.

AI-optimized server revenue doubled year over year. Increased unit sales drove most of that growth, while higher average selling prices contributed to a lesser extent. The figures track separate parts of Dell’s AI business: orders booked, revenue recognized and backlog at quarter-end.

Dell customers have been placing orders further in advance to secure supply, while large customers share future demand through collaborative planning. That coordination gives buyers and Dell more time to plan hardware availability and project delivery.