More than half of Dell Technologies’ quarterly revenue comes from infrastructure, which includes server solutions. The company’s total revenue in the last fiscal quarter increased 58% year-on-year to $46.97 billion, higher than market expectations. This inspired Dell management to raise its full-year revenue forecast to $192 billion from $169 billion in May.
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Against this backdrop, Dell Technologies shares rose 10% after the U.S. trading session ended. Management is encouraged by high demand for data center components from creators of artificial intelligence computing infrastructure; the company now has $95 billion in orders in this area. Net profit more than tripled last quarter to $4.13 billion. Dell expects revenue this quarter to rise 81% year over year to $49 billion.
Since the beginning of this year, Dell’s share price has risen 236%. According to Bloomberg, its founder Michael Dell has now become the fifth richest person in the world. In the field of infrastructure construction, the company’s revenue increased 89% to US$31.78 billion last quarter, exceeding market expectations. Of that amount, $16.4 billion is for servers dedicated to the field of artificial intelligence.
In the field of storage systems, Dell’s revenue grew 26% at the end of last quarter to $4.85 billion. Core revenue from traditional servers and telecom equipment grew 122% to $10.53 billion. According to Dell management, the company’s customers have a clear need for central processing unit (CPU)-based computing power that is used to accelerate the work of artificial intelligence agents. It is this trend that determines the growing demand for servers of classic design.
In the consumer field, Dell made a profit of US$15.03 billion, slightly lower than analysts’ expectations, but still 20% higher than the same period last year, although this increase was only due to rising prices of related products. Chief Operating Officer Jeff Clarke said that the company has prepared for the decline in demand in the PC market and has therefore optimized its business to more effectively meet the needs of the infrastructure solutions field. This fiscal year, Dell plans to generate revenue of approximately US$74 billion through AI server sales, a 200% increase over last year’s performance. In the past 12 months, Dell has received orders for AI servers worth more than $130 billion. In the past two quarters, Dell has generated as much revenue from classic servers and telecom equipment as it did in an entire year in its history.
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