Dell beats second-quarter revenue estimates driven by AI server demand

Secureworks

29/08/2024 21:05

Aug 29 (Reuters) - Dell Technologies  DELL.N  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.O  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.O , following previous unsuccessful attempts
to find a buyer.

 (Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim
Zahid)
 ((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))