Dell forecasts annual sales of up to 91.5 billion on AI boom and PC demand recovery

Dell Technologies on Thursday raised its full-year sales and profit guidance as the company benefited from the boom in artificial intelligence (AI) and demand for computer hardware and server products stabilizing after a months-long slump. Shares of the Round Rock, Texas-based company rose 8 percent in extended trading. The results are the latest sign that a slump in technology spending may be coming to an end, after major network equipment maker Cisco also beat quarterly revenue estimates.

The company is expected to see an increase in demand for its PowerEdge servers and generative AI designs powered by Nvidia as large technology companies continue to invest in artificial intelligence.

“AI is already showing that there is tailwind over the long term, and demand is growing across our portfolio,” said Chief Operating Officer Jeff Clarke.

The company forecast revenue of between US$22.5 billion (approx. Rs. 1,86,025 crore) and US$ 23.5 billion (approx. Rs. 1,94,251 crore) for the third quarter, beating analyst estimates of 21 .67 billion US dollars (about 1,79,129 crore rupees). refinitive data. Dell expects earnings per share of US$1.45 (about Rs.120), plus or minus 10 cents compared to estimates of US$1.38 (about Rs.114).

For the full year, Dell now expects revenue of between US$89.5 billion (approx. Rs. 7,40,057 crore) and US$91.5 billion (approx. Rs. 7,56,595 crore) and earnings per share of 6, US$30 (about 521 crore rupees), plus or minus 20 cents.

Dell reported second-quarter revenue and EPS that came in ahead of analysts’ estimates.

Server and network revenue for the second quarter was US$4.27 billion (approximately Rs.3.52,953 crore), up 11 percent from the first quarter, reflecting higher demand for AI-optimized servers is due, Dell said.

Revenue at the company’s Client Solutions Group (CSG) — home of its consumer and enterprise PC businesses — increased 8 percent from the first quarter to $12.94 billion (approximately 1,06,974 crore).

In this challenging market environment, according to Gartner analyst Mikako Kitagawa, it’s impressive that Dell is posting 7.5 percent operating income over sales (CSG), demonstrating the company’s “profitability-first” approach.

The results stand in sharp contrast to those of rival HP, which lowered its full-year guidance on a slump in PC demand and weakness in China.

© Thomson Reuters 2023

Affiliate links may be automatically generated – see our Ethics Statement for details.

Chrissy Callahan

Chrissy Callahan is a Worldtimetodays U.S. News Reporter based in Canada. His focus is on U.S. politics and the environment. He has covered climate change extensively, as well as healthcare and crime. Chrissy Callahan joined Worldtimetodays in 2023 from the Daily Express and previously worked for Chemist and Druggist and the Jewish Chronicle. He is a graduate of Cambridge University. Languages: English. You can get in touch with me by emailing:

Related Articles

Back to top button