Dell’s latest quarterly results have beaten Wall Street expectations, driven by an 80% increase in server sales, largely attributable to business and cloud storage provider’s interest in artificial intelligence (KI).
Per CNBCDell’s net income rose to $841 million from $455 million last year, while total revenue for the quarter, $25.06 billion, was up 9% from $22.93 billion in the same period last year.
These upward trends are consistent with AI’s stranglehold on the tech industry, and Dell isn’t the only company seeing them. Days earlier, HP has announced its own Q3 performance resultsincluding a 2% increase in net sales and “a return to revenue growth” for the company, citing the release of a series of AI-powered PCs.
Dell’s Dominance in AI PCs
Dell has become one of the largest suppliers of AI-equipped server that use reliable hardware, such as Nvidia’s own Blackwell chip seriessuitable for purposes in the field of ‘trillion-parameter scale generative AI’.
In May 2024, during this year’s Dell Technologies World conference, Dell CEO Michael Dell and Nvidia CEO Jensen Huang announced ajoint announcement of an ‘AI factory’combining server production with a “generative AI solution for digital assistants” to help businesses deploy AI chatbots.
Given the scale of this hardware and software manufacturing and deployment operation, it may come as no surprise that Dell Chief Operating Officer Jeff Clarke said CNBCquoted during the latest earnings call as saying that “we are competing in all the large AI deals and winning significant deployments at scale,” even going so far as to disclose a backlog of $3.8 billion in unfilled AI server orders.