However, Dell's Q4 results showed a decline in its Infrastructure Solutions Group and Client Solutions Group by 6% and 11% respectively. Despite this, the company's profit for the year increased by 32% to $3.195 billion, aided by a 7% decrease in operating expenses. Clark emphasized the company's resilience and adaptability in a dynamic market, and its focus on the high-growth AI opportunity.
Key takeaways:
- Dell's focus on "AI-optimized" servers has led to a significant increase in orders and backlog, causing the company's share price to rise despite overall declining sales in fiscal 2024.
- The company shipped $800 million in servers built for AI in its last quarter, and the market capitalization of Dell increased by 16 percent in after-hours stock trades.
- Despite a decrease in Q4 revenue and annual revenue, Dell's profit for the year increased by 32 percent to $3.195 billion, aided by a seven percent drop in operating expenses.
- Dell's COO, Jeff Clark, emphasized the company's focus on AI and its potential for growth, stating that the "long-term AI action is on-prem where customers can keep their data and intellectual property safe and secure."