Dell soars on the stock market by 25% thanks to its AI servers

Dell Technologies, manufacturer of personal computers and computer servers among other equipment, soars more than 25% on Wall Street after beating earnings forecasts thanks to strong demand for equipment to meet the growing demand created by generative artificial intelligence (AI) .

The American company, founded and directed by Michael Dell, known for its traditional personal computer (PC) business, has attracted the attention of investors because its high-capacity computer servers are increasingly in demand to manage intelligence -related tasks. generative artificial (AI).

Late Thursday, Dell reported fourth-quarter results , which beat estimates thanks to increased demand for AI-related equipment. Dell’s infrastructure subsidiary , which includes the server business, had a turnover of 9,330 million dollars (8,617 million euros) in the quarter and exceeded market estimates , although it fell 6% compared to the same period in 2022 due to the entry of orders from previous quarters.

The rise of generative AI , which has spurred groups such as the chip manufacturer Nvdia onto the stock market and attracted the interest of all the big technology companies, has allowed Dell to triple its capitalization in the last twelve months , to around $85 billion.

Results

In the fiscal fourth quarter , Dell earned $1,160 million (€1,070 million), 89% more , despite the 11% decline in revenue, to $22,318 million.

For the entire year , which ended on February 2, the American company obtained a net profit of 3,211 million dollars (2,965 million euros), 31.5% more . Net income fell 13.6% , to $88,425 million .

The short and medium-term forecasts are encouraging for the company because the AI phenomenon is unstoppable. “We have only just begun to realize the opportunities that AI offers us, and we believe that Dell is uniquely positioned with our broad portfolio to help customers produce generative AI solutions that meet performance, cost and security requirements,” he said . Dell COO Jeff Clarke.

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