Michael Dell, Chairman and CEO of Dell Technologies, is speaking at the Mobile World Congress 2024 in Barcelona, Spain, on February 27, 2024.on Thursday that beat analyst estimates for earnings and sales, as the company has emerged as one of the top vendors for AI servers.
Shares fell about 12% in extended trading at one point before recovering. When the company reported earnings in February, it reported earnings per share that were significantly higher than expectations. This quarter, Dell's earnings were in line with Wall Street's forecast.Dell reported $955 million in net income during the quarter, or $1.32 per diluted share, versus $578 million, or 79 cents, in the year-ago period. Overall sales during the quarter were up 6% on an annual basis.
Dell's division including data center sales, called Infrastructure Solutions Group, saw sales rise 22% on an annual basis to $9.2 billion. The company said that servers were a fast-growing unit, with sales rising 42% to $5.5 billion, and called out strong demand for AI servers. Dell has emerged as a top vendor for AI-oriented servers, which are in high demand as companies invest in infrastructure for predictions and generative AI. Earlier this year,CEO Jensen Huang called out Dell founder Michael Dell at a conference as the person to contact to place orders for the company's new chips.Before Thursday's report, Dell shares had more than doubled in 2024.
Dell's division for PCs and laptops, called Client Solutions Group, showed flat growth on an annual basis with sales of $12.0 billion.