PC and server maker Dell Technologies has been thriving on the robust demand for its artificial intelligence services. This prompted the company to boost its full-year revenue guidance.
For the fiscal second quarter, Dell reported revenue of $25.03 billion, surpassing the analysts’ expectations of $24.53 billion. Its adjusted earnings per share came at $1.89 per share, while analysts estimated $1.71.
The company’s net income jumped by 85% on a year-over-year basis, while the server division experienced an 80% jump in sales.
Dell has partnered with chipmaker giant Nvidia earlier this year and has been ramping up its production of servers based around Nvidia’s highly sought-after AI chips. These servers proved to be popular among companies, especially mid-sized ones, that want to add AI ability to their business.
“We are competing in all of the big AI deals and are winning significant deployments at scale,” Jeff Clarke, Dell’s operating chief, told analysts during a conference call.
Dell now expects its full-year revenue to come to $95.5 billion to $98.5 billion, compared to previous estimates of between $93.5 billion and $97.5 billion. The company’s full-year revenue for the past fiscal year came at $88.4 billion.
Dell’s shares soared to $118.81 at one point in aftermarket trading before coming slightly down to trade at $114.64 per share on Friday. At the current level, the company’s stock is 53.28% up year-to-date.