Dell’s server sales are riding high off of cloud and AI investment

Wall Street-smashing expectations follow similar results published this week by HP

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Dell’s latest quarterly results have surpassed Wall Street’s expectations, driven by an 80% rise in server sales largely attributed to business andcloud storageprovider interest in artificial intelligence (AI).

PerCNBC, Dell’s net income has climbed to $841 million from $455 million versus last year, while overall revenue for the quarter, $25.06 billion, saw a 9% increase from $22.93 billion this time last year.

These upward trends chime with AI’s stranglehold on the tech industry, and Dell isn’t the only company seeing them. Days previously,HP announced its own Q3 performance results, including a 2% rise in net revenue and “a return to revenue growth” for the company, citing the release of a range ofAI-powered PCs.

Dell’s AI PC dominance

Dell has become one of the largest vendors for AI-equippedserversthat use reliable hardware, such asNvidia’s own Blackwell chip range, set to suit “trillion-parameter scale generative AI” purposes.

Back in May 2024 at this year’s Dell Technologies World conference, Dell CEO Michael Dell andNvidiaCEO Jensen Huang made a joint announcement of an ‘AI factory’, combining server production with a “generative AI solution for digital assistants” to help businesses to deployAI chatbots.

Given the scale of this operation across hardware and software production and deployment, it’s perhaps no surprise that Dell’s Chief Operating Officer Jeff Clarke was, perCNBC, quoted on the latest earnings call as saying that “we are competing in all of the big AI deals and are winning significant deployments at scale,” and going so far as to disclose a backlog of $3.8 billion’s worth of unfulfilled AI server orders.

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Luke Hughes holds the role of Staff Writer at TechRadar Pro, producing news, features and deals content across topics ranging from computing to cloud services, cybersecurity, data privacy and business software.

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