(Reuters) – Dell Technologies beat Wall Street estimates for first-quarter revenue on Thursday, ending a six-quarter streak of declines helped by growing demand for its AI-powered servers.
A surge in demand for high-performance computing and large-scale data centers to support the growing adoption of generative AI has driven investment in AI-enabled products, driving demand for servers from companies like Dell.
The results come days after Dell unveiled a range of AI-enabled PCs powered by Qualcomm processors and said a new server, supporting Nvidia’s latest chips, will be available from the second half of 2024.
Spending on AI servers is expected to exceed $33 billion by 2024, according to research firm International Data Corporation.
The availability of AI PCs is expected to boost demand for PC makers, helping the market recover from a lull in orders following the pandemic-induced buying spree.
Peer HP Inc beat second-quarter revenue expectations on Wednesday, signaling a recovery in the PC market.
Dell’s revenue for the first quarter ended May 3 rose about 6% to $22.24 billion, beating the average analyst estimate of $21.64 billion, LSEG data showed.
The company’s revenue for its infrastructure solutions group – which includes its storage, software and server offerings – rose 22% to $9.23 billion, while that of its client solutions group – home to PCs – was flat at $11.97 billion.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Alan Barona)
