Dell Technologies Inc. is becoming cool again, emerging as a beneficiary of the artificial-intelligence trend that has sent shares of chip stocks like Nvidia Corp. and Advanced Micro Devices Inc. soaring over the past year. Wall Street continues to look for AI plays that are already seeing the benefits of frenzied spending in their financial results. Dell DELL, +25.48% looks to be in that camp, disclosing $800 million in shipments of AI-optimized servers for the latest quarter, with orders for them up almos ...

Tech firms Dell Technologies Inc (NYSE:DELL) and Hewlett Packard Enterprise Co (NYSE:HPE) are both in focus following their respective earnings reports, though one is faring much better than the other today. Dell Technologies stock hit record highs after the use of artificial intelligence (AI) boosted the company's annual forecast. The computer maker also topped fourth-quarter earnings and revenue estimates, with Morgan Stanley adding DELL to its "top picks" list while also raising its price target to $128 ...

ToplineShares of Dell Technologies skyrocketed Friday after the computing company topped Wall Street’s expectations for earnings on the back of its growing artificial intelligence unit, sending the legacy company’s stock to a record level. Dell's billionaire CEO Michael Dell speaks at a conference last month.NurPhoto via Getty Images Key FactsDell’s stock jumped almost 40% to over $130 shortly after market open, registering its highest share price and what would be its largest single-day gain since this ite ...

Stock futures were little changed in premarket trading on Friday as Dell (DELL) stock surged on demand for AI servers and New York Community Bank (NYCB) tumbled after replacing its CEO amid concerns about its loan portfolio. Dell said AI-optimized server orders jumped nearly 40% in the fourth quarter, highlighting the computing pioneer's opportunity to gain from artificial intelligence investment. New York Community Bank delayed a regulatory filing, citing an assessment that found "material weaknesses in t ...

Disclosures SPIN-OFF OF VMWARE, INC. • Delivered Revenue of $88.4B; Diluted EPS of $4.36, & non-GAAP diluted EPS1 of $7.13 • Reached our 1.5x core leverage ratio2target exiting the fiscal year • Projected growth in unstructured data from AI should benefit our industry-leading storage business 3 Copyright © Dell Inc. All Rights Reserved. 1 See supplemental slides in Appendix B for reconciliation of non-GAAP measures to their most directly comparable GAAP measures. 2 See footnote 5 on slide 16 for definition ...

Financial Data and Key Metrics Changes - For FY24, the company reported revenue of $88.4 billion, operating income of $7.7 billion, and diluted EPS of $7.13, despite a revenue decline [50] - Q4 revenue was $22.3 billion, down 11%, with strong gross margins and lower operating expenses [77] - Gross margin was $5.5 billion, representing 24.5% of revenue, up 70 basis points [77] - Q4 net income was $1.6 billion, up 22%, driven by a lower tax rate and lower infrastructure and operations costs [57] Business Line Data and Key Metrics Changes - In ISG, traditional server demand grew year-over-year, marking the third consecutive quarter of sequential growth, with revenue of $9.3 billion, down 6% [52][78] - AI-optimized server orders increased by nearly 40% sequentially, with $800 million shipped in Q4 [53] - CSG revenue was $11.7 billion, down 12%, largely due to a decline in units [58] Market Data and Key Metrics Changes - The company noted a growing demand for AI servers, with a backlog that nearly doubled sequentially, exiting the fiscal year at $2.9 billion [53] - The traditional server market is expected to recover modestly, with a long digestion period noted in the industry [26][50] - The company anticipates a return to growth in the PC market in the second half of 2024, driven by an aging install base and the end of life for Windows 10 [161] Company Strategy and Development Direction - The company is focusing on leveraging its strengths to extend leadership positions and turn new opportunities into incremental growth, particularly in AI [76] - The strategy includes maintaining pricing discipline and managing costs effectively in a competitive environment [55][77] - The company is optimistic about the upcoming PC refresh cycle and the long-term impact of AI on the PC market [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the AI market, projecting a $152 billion opportunity with a 20% CAGR through 2027 [7] - The company expects ISG to grow in the mid-teens, fueled by AI, with a return to growth in traditional servers and storage [61] - Management acknowledged the cautious spending behavior of enterprise and large customers due to macroeconomic factors [72][161] Other Important Information - The company announced a 20% increase in its annual dividend to $1.78 per share, reflecting confidence in its business and cash flow generation [81] - The company aims to return 80% or more of its adjusted free cash flow to shareholders over the long term [63] Q&A Session Summary Question: Insights on traditional server market recovery - Management noted that traditional server demand grew year-over-year in Q4, marking the third consecutive quarter of sequential growth, with optimism about future recovery [25][26] Question: AI server pricing pressure - Management acknowledged pricing pressure in AI servers but indicated that margins improved quarter-over-quarter, with a focus on profitability [15][17] Question: Growth expectations for ISG and CSG - Management expects ISG to grow in the mid-teens, driven by AI, while CSG is anticipated to grow in the low single digits [61][62] Question: AI server backlog and revenue conversion - Management indicated that the AI server backlog of $2.9 billion is expected to convert to revenue, with improved lead times for H100 GPUs [111][112] Question: Storage demand related to AI - Management highlighted that storage demand typically lags behind server demand but is expected to grow as AI workloads increase [135][136]

Dell Technologies (DELL) reported $22.32 billion in revenue for the quarter ended January 2024, representing a year-over-year decline of 10.9%. EPS of $2.20 for the same period compares to $1.80 a year ago.The reported revenue represents a surprise of +0.84% over the Zacks Consensus Estimate of $22.13 billion. With the consensus EPS estimate being $1.73, the EPS surprise was +27.17%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...

Dell Technologies (DELL) came out with quarterly earnings of $2.20 per share, beating the Zacks Consensus Estimate of $1.73 per share. This compares to earnings of $1.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 27.17%. A quarter ago, it was expected that this computer and technology services provider would post earnings of $1.47 per share when it actually produced earnings of $1.88, delivering a surprise of 27.89%.Over ...

Key TakeawaysDell shares surged after the company posted fourth-quarter revenue for the 2024 fiscal year that beat estimates, driven by gains in its server segment as artificial intelligence (AI) demand booms.The company's fourth-quarter revenue at $22.3 billion beat analyst estimates, while net income at $1.16 billion was slightly below estimates compiled by Visible Alpha.Dell's Infrastructure Solutions Group grew 10% from the previous quarter as AI-optimized server orders jumped nearly 40%.Analysts have s ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...