Investing.com — Shares in Dell Technologies Inc (NYSE:) touched a record high on Friday after the software and laptop group posted higher-than-anticipated quarterly sales, sparking optimism over a rebound in the market for corporate technology.
The firm was also a major beneficiary of a recent spike in demand for artificial intelligence-related products, with Chief Operating Officer Jeff Clarke noting that AI is already proving to be a “long-term tailwind.” In particular, Dell’s PowerEdge servers and generative AI designs with chipmaker Nvidia (NASDAQ:) are anticipated to receive a boost from the AI boom.
Excitement over the nascent technology has already bolstered Dell’s servers and networking business. Revenue at the unit climbed by 11% quarter-in-quarter to $4.27 billion.
Meanwhile, Dell’s client solutions group, which houses its consumer and enterprise personal computing division, reported an 8% jump in sales from the first quarter to $12.94B. The returns pointed to a possible recovery in post-pandemic demand in the wider computing industry from a slowdown throughout 2023.
Total revenue in the second quarter came in at $22.9 billion, the Texas-based company said on Thursday, representing a decline of 13% year-over-year but still above Bloomberg consensus estimates of $20.8B. Adjusted earnings per share of $1.74 topped expectations as well.
Dell also delivered a higher-than-projected third-quarter financial outlook and raised its full-year guidance.