Dell Shares Surge As AI Server Demand Fuels Better-Than-Expected Earnings
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Dell beat Q4 revenue and profit estimates, helped by demand for its AI servers. Shares rose 19% after hours.
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The PC market is showing signs of recovery after a slowdown that began in 2022 when pandemic-driven demand faded.
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Dell is benefiting from rising demand for its AI servers equipped with Nvidia GPUs for high-performance computing needs. AI server orders up 40% and backlog nearly doubled.
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Rival Lenovo also reported stronger than expected Q3 earnings, with revenue returning to growth after 5 quarters of declines.
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Dell Q4 revenue was $22.32 billion, slightly ahead of estimates. Excluding items, profit per share of $2.20 also beat estimates.