Dell's latest quarterly results have beaten Wall Street expectations, driven by an 80% increase in server sales largely attributed to business and cloud storage Supplier interest in artificial intelligence (AI).
By CNBCDell's net income rose to $841 million from $455 million compared to last year, while overall revenue for the quarter, $25.06 billion, saw a 9% increase from $22.93 billion last year at this time.
These upward trends coincide with AI's absolute dominance in the tech industry, and Dell isn't the only company to see them. Days earlier, HP announced its own third quarter performance resultsincluding a 2% increase in net income and “a return to revenue growth” for the company, citing the launch of a series of Computers with artificial intelligence technology.
Dell's dominance in AI-powered PCs
Dell has become one of the largest suppliers of AI-equipped devices. servers that use reliable hardware, such as Nvidia's Blackwell chip lineset up to suit the purposes of “trillion-parameter generative AI.”
In May 2024, at this year's Dell Technologies Global Conference, Dell CEO Michael Dell and Nvidia CEO Jensen Huang made a statement.Joint announcement of an 'artificial intelligence factory'combining server production with a “generative AI solution for digital assistants” to help businesses deploy AI chatbots.
Given the scale of this operation in the production and distribution of hardware and software, it is perhaps no surprise that Dell's chief operating officer, Jeff Clarke, was, for CNBCquoted on the latest earnings call as saying that “we are competing on all the large AI deals and are winning significant deployments at scale,” and going so far as to disclose a backlog of unfulfilled AI server orders worth $3.8 billion.
