Dell forecasts upbeat full-year profit on cost cuts, robust AI server demand
Dell Technologies forecast annual profit above Wall Street estimates on Thursday on the back of cost cuts and growing demand for its AI-optimized servers, sending the company's shares up 3% in extended trading.
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The company's AI servers, which are equipped with Nvidia's powerful chips, are designed to handle intense computational demands of training large language models like those that power chatbots such as ChatGPT.
That has boosted demand for Dell and its rivals including Super Micro Computer amid high competition in the AI server market.
«The deals we've booked with xAI and others put our AI server backlog at roughly $9 billion as of today,» Dell's Chief Operating Officer Jeff Clarke said.
The company competes with PC makers including HP Inc at a time when a sweeping U.S. trade tariff on China could hurt companies by triggering a price increase on tech products.
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