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Dell Technologies Q2 revenue beats estimates; raises full-year forecasts on AI boost | Mint

Sep 01, 2023 - livemint.com
Dell Technologies has raised its full-year revenue and profit forecast, leading to an 8% increase in shares in extended trading. The company's third-quarter revenue is expected to be between $22.5 billion and $23.5 billion, surpassing analysts' estimates of $21.67 billion. Dell's full-year revenue is now projected to be between $89.5 billion and $91.5 billion, with earnings per share of $6.30.

The company's improved outlook is due to the AI boom and stabilizing demand for computer hardware and server products. Dell's second quarter saw an 11% increase in server and networking revenue to $4.27 billion, driven by higher demand for AI-optimized servers. The company's client solutions group also saw an 8% increase in revenue from the first quarter to $12.94 billion.

Key takeaways:

  • Dell Technologies raised its full-year revenue and profit forecast, causing its shares to rally by 8% in extended trading.
  • The company's third-quarter revenue forecast between $22.5 billion and $23.5 billion beats analysts’ estimates of $21.67 billion.
  • Dell's servers and networking revenue rose 11% QoQ to $4.27 billion, driven by higher demand for AI-optimized servers.
  • The company is expected to see a demand boost for its PowerEdge servers and generative AI designs with Nvidia from rising investments in AI by Big Tech companies.
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