Dell forecasts upbeat fiscal 2025 on AI server demand

economictimes.indiatimes.com:

Dell Technologies forecast annual revenue and profit above Wall Street estimates on Thursday, betting on demand for its artificial intelligence servers, sending the company's shares up more than 16% in after-hours trading.

Dell is a beneficiary of rising demand for its AI servers that are equipped with chip designer Nvidia's graphics processing units (GPUs), which helps to meet the demands of high-performance computing.

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«Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion,» Chief Operating Officer Jeff Clarke said in a statement.

The PC market is also showing signs of recovery following a slowdown in revenue that began in 2022 from the peaks touched during the pandemic, as the boom in work-from-home demand for PCs and electronics faded.
«We remain bullish on the coming PC refresh cycle and the longer-term impact of AI on the PC market,» CFO Yvonne McGill said on a post-earnings call.

Also in after-hours trading on Thursday, shares in rival server maker Hewlett Packard Enterprise dropped 3.7% after it forecast quarterly revenue below Wall Street estimates.
Another competitor, Lenovo Group last week reported strong quarterly earnings, with