Shares of Dell rose 4 percent on strong demand for its AI-based servers. The share price rose last Friday after Dell’s strong performance in the server market and the setting of new revenue targets. News Reuters and Independent.
Many medium-sized businesses have brought AI capabilities to their systems with Dell’s AI-based Enterprise Server.
“The enterprise (segment) is a huge opportunity for us because we are still very early in the adoption of AI technology,” said Jeff Clarke, Dell’s chief executive officer (CEO).
Demand for Dell’s AI servers has increased significantly this year. Dell’s servers are able to fulfill the high computational capacity required especially for AI-based systems.
And on the strength of skyrocketing demand for these AI-based servers, Dell’s revenue rose 38 percent to $11.65 billion in the second quarter of the year (April-June period). As a result, the company has also increased its revenue target for the current year.
Dell’s 2024 annual revenue target was previously $93.5 billion to $97.5 billion. Currently their target is 95.5 to 98.5 billion dollars. Dell’s earnings per share forecast also increased to $7.80. It should be noted that Dell’s market value has increased by 45 percent in the stock market this year.
