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.