Michael Dell, president and main enforcement serviceman of Dell Inc., speaks during the Dell Technologies World league successful Las Vegas, Nevada, US, connected Monday, May 20, 2024.
Bridget Bennett | Bloomberg | Getty Images
Dell Technologies reported quarterly net connected Tuesday that bushed expert expectations for net per stock but came up airy connected wide revenue. Shares fell 6% successful after-hours trading.
Here's however Dell did for the fiscal 3rd 4th versus LSEG statement estimates for the 4th ending Nov. 1:
- Earnings per share: $2.15 adjusted versus $2.06 expected
- Revenue: $24.4 cardinal versus $24.67 cardinal expected
Net income climbed 12% to $1.12 billion, oregon $1.58 per share, from astir $1 billion, oregon $1.36 per share, in the year-ago period. Overall gross accrued astir 10% from $22.25 cardinal a twelvemonth ago.
Dell volition springiness a forecast for however it sees the existent 4th shaping up connected the call.
The company's shares person risen 86% truthful acold successful 2024 arsenic investors recognize it's 1 of the astir important companies selling tools and systems for artificial quality developers.
Dell is simply a apical vendor for machine clusters required to make and deploy artificial intelligence, particularly computers based astir Nvidia chips. It competes against different server makers specified arsenic Supermicro and HPE, arsenic good arsenic manufacturers successful Asia.
Demand for Nvidia's AI accelerators remains precocious from unreality providers, enterprises, and authorities institutions, who often bargain systems installed with tens of thousands of AI chips. Dell sells the completed systems.
This year, Nvidia CEO Jensen Huang hailed Dell and its laminitis Michael Dell arsenic the institution to interaction to spot orders for its caller Blackwell AI chips.
"AI is simply a robust accidental for america with nary signs of slowing down," said Dell main operating serviceman Jeff Clarke successful a statement.
Dell's AI server income are reported successful the company's Infrastructure Solutions Group (ISG), which includes AI servers, storage, networking components, and accepted servers. The group's gross roseate 34%, mostly driven by AI sales, to $11.4 billion.
The strongest portion of Dell's ISG concern was its Servers and Networking subsidiary, which includes AI systems. Revenue roseate 58% to $7.4 billion. Dell shipped $2.9 cardinal successful AI servers during the quarter, and the institution said during the 4th that customers had booked $3.6 cardinal dollars of aboriginal AI server orders.
The institution said accrued AI server orders boosted request by "double digits" for its accepted servers, which are little power-hungry and based astir CPU chips from Intel oregon AMD, and tin escaped up country oregon powerfulness wrong information centers for companies investing heavy into AI infrastructure.
The company's machine retention systems grew little powerfully than servers, rising 4% to $4 billion. The wide ISG portion is much profitable, acknowledgment to income of pricier AI systems.
Dell's Client Solutions Group, which sells PCs and laptops to consumers and enterprises, declined 1% connected an yearly ground to $12.1 billion.
While commercialized clients buying PCs for their workforce roseate 3% connected an yearly ground to $10.1 billion, the company's income from PCs to consumers fell 18% connected an yearly ground to $2 billion.
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