Dell Technologies Raises Full-Year Forecasts on AI boost
Thursday’s extended trading saw an 8% increase in Dell Technologies shares after the company increased its full-year revenue and profit projection.
According to Refinitiv data, the business predicted third-quarter revenue between $22.5 billion and $23.5 billion, exceeding analysts’ projections of $21.67 billion. According to Reuters, Dell anticipates earnings per share of $1.45, plus or minus 10 cents, versus predictions of $1.38.
According to the article, Dell Technologies now anticipates revenue for the entire year to range between $89.5 billion and $91.5 billion, and earnings per share of $6.30, plus or minus 20 cents.
Revenue and EPS for Dell’s second quarter exceeded analyst expectations.
The company’s servers and networking revenue increased 11% QoQ to $4.27 billion in the second quarter, driven by higher demand for AI-optimized servers. CSG’s revenue increased 8% from the first quarter to $12.94 billion. The company’s client solutions group (CSG) also experienced an 8% increase, reaching $12.94 billion. The company expects a demand boost for PowerEdge servers and generative AI designs with Nvidia from Big Tech investments. AI is expected to show a long-term tailwind, with continued demand growth across the portfolio.
(With inputs from Shikha Singh)
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