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Dell Stock Rises After Company Reports Stronger-Than Expected Earnings, AI Server Surge

A Dell laptop at a Best Buy store in Texas in 2023.

 Brandon Bell / Getty Images

Key Takeaways

  • Dell's second-quarter results beat expectations on the top and bottom lines.
  • Server and networking revenue rose 80% to a record $7.7 billion.
  • AI-optimized server demand rose 23% sequentially.

Dell Technologies (DELL) shares jumped after the bell Thursday following second-quarter revenue that cleared analysts’ expectations on the strength of 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) sales.

Revenue rose 9% year-over-year to $25 billion, above the analyst consensus from Visible Alpha. Server and networking revenue rose 80% to a record $7.7 billion, lifted by strong demand for both AI and traditional servers. Diluted 澳洲幸运5官方开奖结果体彩网:earnings per share came in at $1.17, up year-over꧅-year and narrowly above e𒁏xpectations. 

"Our AI momentum accelerated in Q2, and we've seen an increase in the number of enterprise customers buying AI solutions each quarter," 澳洲幸运5官方开奖结果体彩网:Chief Operating Officer Jeff Clarke said. AI-optimized server demand, he said, 🐠was $3.2 billion, rising 23% sequentially.

Server aꦕnd networking revenue is part of Dell’s infrastructure solutions g𒁏roup, which saw revenue rise 38% to $11.6 billion. Client solutions group revenue fell 4% to $12.4 billion.

Shares of Dell, which edged lower during Thursday's regular trading, rose about 2% early in the after-hours session.

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