Posted 3/1/2024, 1:31:00 PM
Dell Beats Q4 Earnings on Surging AI Server Demand Despite Macro Uncertainty
- Dell beat Q4 earnings expectations with adjusted EPS of $2.20 on revenue of $22.32B, driven by surging demand for its AI-optimized servers
- Revenue for Dell's Infrastructure Solutions Group grew 10% sequentially to $9.33B, while its Client Solutions Group saw a 12% drop in revenue
- Dell reported nearly 40% sequential growth in AI server orders and its backlog doubled to $2.9B exiting Q4
- For fiscal 2025, Dell is optimistic about AI-driven growth but noted some customer caution due to macroeconomic uncertainty
- Analysts remain bullish on Dell stock given the company's leadership in the fast-growing AI hardware/services market and competitive edge in supplying high-end servers