(Reuters) – Dell Technologies beat Wall Street estimates for first-quarter revenue on Thursday, snapping a six-quarter streak of declines, thanks to surging demand for its artificial intelligence-powered servers.
The surge in demand for high-performance computing and large-scale data centers to support the growing adoption of generative AI has spurred investments in AI-capable products, driving demand for servers offered by companies like Dell.
The results come days after Dell unveiled a range of AI-enabled computers powered by Qualcomm processors, and said the new server, which supports Nvidia's latest chipsets, will be available from the second half of 2024.
Spending on AI servers is expected to exceed $33 billion in 2024, according to research firm International Data Corporation.
The availability of AI-powered personal computers is expected to boost demand among PC makers, helping the market recover from falling orders following the pandemic-induced buying spree.
Peer HP Inc beat second-quarter revenue estimates on Wednesday, signaling a recovery in the personal computer market.
Dell's revenue for the first quarter ended May 3 rose about 6% to $22.24 billion, beating analysts' average estimate of $21.64 billion, according to LSEG data.
The company's revenue from its Infrastructure Solutions Group – which includes storage, software and server offerings – rose 22% to $9.23 billion, while revenue from its Customer Solutions Group – home to personal computers, was flat at $11.97 billion.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Alan Barona)