Revenue from Dell’s servers equipped to handle artificial intelligence tasks more than doubled from the previous quarter.
Dell Technologies fell about 18% in extended trading after its first revenue increase since 2022 wasn’t enough to impress investors with high expectations for the company’s AI server business.
Revenue from Dell’s powerful servers equipped to handle artificial intelligence tasks more than doubled from the previous quarter to $1.7 billion , chief operating officer Jeff Clarke said in the statement. The company raised its revenue outlook for the fiscal year ending in February 2025 to a range of $93.5 billion to $97.5 billion, an 8% increase at the mid-point, which would top analysts’ average estimate of a 7% gain.But that excitement around AI demand for Dell’s machines raised expectations for Thursday’s results, Woo Jin Ho, an analyst at Bloomberg Intelligence, said in an interview on Bloomberg Television after the report was released.
For its better-known business of selling personal computers, Dell reported $12 billion in revenue, little changed from the same period a year earlier.The PC market had seen a historic decline over the last two years after many consumers, businesses and schools purchased laptops in the early months of the pandemic.
Dell Technologies Jeff Clarke Yvonne Mcgill Hardware
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