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Dell beats second-quarter revenue estimates driven by AI server demand
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Dell beats second-quarter revenue estimates driven by AI server demand
Sep 1, 2024 9:00 PM

Aug 29 (Reuters) - Dell Technologies ( DELL ) beat Wall

Street estimates for second-quarter revenue on Thursday, driven

by strong demand for its AI-powered servers amid a recovering

personal computer market.

Dell has capitalized on increasing demand for its AI

servers, which are powered by Nvidia's ( NVDA ) graphics

processors. These servers are designed to meet the growing

computing needs of AI systems, including training language

models.

Revenue for the second-quarter ended Aug 2 rose about 9% to

$25.03 billion, beating analysts' average estimate of $24.53

billion, according to LSEG data.

"AI-optimized server demand was $3.2 billion, up 23%

sequentially, and $5.8 billion year to date. Backlog was $3.8

billion, and our pipeline has grown to several multiples of our

backlog," Chief Operating Officer Jeff Clarke said in a

statement.

Dell's revenue for the infrastructure solutions group, which

includes its storage, software and server offerings, rose about

38% to a record $11.65 billion. In contrast, revenue for the

client solutions group - home to PCs - fell about 4% to $12.41

billion.

The global PC market continued to recover in the second

quarter, with total shipments rising 3.4% from a year earlier to

62.8 million units, according to research firm Canalys.

The results come after a Reuters exclusive report that said

Dell is again exploring a possible sale of cybersecurity firm

SecureWorks ( SCWX ), following previous unsuccessful attempts

to find a buyer.

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