• Dell Technologies forecasts annual revenue and profits for the fiscal year 2025 to exceed Wall Street expectations, banking on the demand for its AI servers, propelling the company’s stock to rise over 16% in after-hours trading. With the rising demand for its AI servers that are equipped with chip designer Nvidia’s graphics processing units (GPUs), orders increasing nearly 40% sequentially, and the backlog almost doubling.
  • Canalys, a data research company, reported in January that the global personal computer market saw a 3% growth recovery in the fourth quarter of 2023, anticipating a stronger revival in 2024.

Dell benefits from the growing demand for its AI servers, equipped with graphics processing units (GPUs) from chip design company Nvidia,which helps to meet the requirements of high-performance computing.Orders surged nearly 40% sequentially, and the backlog nearly doubled. Signs of recovery in the personal computer market are also evident.

Stack of orders

With the continuous growth in demand for its AI servers, Dell Technologies predicts that annual revenue and profits for the fiscal year 2025 will surpass Wall Street’s expectations. Chief Operating Officer Jeff Clarke stated, “Our strong AI-optimized server momentum continues, with orders increasing nearly 40 per cent sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion.” These servers are equipped with graphics processing units (GPUs) from chip design company Nvidia to meet the demands of high-performance computing.

In after-hours trading, Dell’s stock surged over 16%, while rival server maker HP Enterprise’s stock dropped by 3.7%, as it forecaste quarterly revenue below Wall Street expectations. Another competitor, Lenovo Group, released robust quarterly performance reports last week, achieving growth after five consecutive quarters of decline.

PC market recovery

The personal computer market exhibits signs of recovery, entering a new update cycle for personal computers. The global personal computer market achieved a 3% growth in the fourth quarter of 2023, with expectations of a more robust recovery in 2024.

CFO Ivonne McMillan expressed optimism during the earnings call, stating, “We remain optimistic about the upcoming personal computer refresh cycle and the long-term impact of AI on the personal computer market.”

Also Read:Intel aims for over 100 million AI PCs globally by 2025