 |
Dell Technologies, a company that provides IT hardware, software, and service solutions, has exceeded market expectations with its quarterly results.
Dell’s revenue for the fourth quarter of the fiscal year 2024 was $22.32 billion, a decrease of 10.9% compared to the previous year, exceeding market expectations. Despite the conservative perspective on investment among corporations, the Infrastructure Solutions Group (ISG) section was evaluated for recording better-than-expected performance.
AI server sales improved by 60% compared to the last quarter, recording $800 million. The increase in sales was due to supply improvements.
Researcher Ryu Young Ho from NH Investment & Securities said, “The backlog of AI server orders has nearly doubled compared to the last quarter. Although the recovery speed of general servers is slower than in the past, it has shown a recovery trend for two consecutive quarters.”
Dell provided a revenue guidance of $21-22 billion for the first quarter.
 |
Researcher Ryu Young Ho said, “Although the proportion of AI-related sales is still low, it is expected to lead this year’s performance based on the diverse product portfolio and orders,” and “Improvement in PCs and general servers is also expected, and performance momentum in the second half of the year is anticipated.”
However, while AI server growth is expected, a conservative perspective on the CSG section in the first half of the year was maintained. AI servers are expected to continue quarterly growth based on their diverse portfolio and products.
Researcher Ryu advised, “While the short-term surge in stock prices is burdensome, expectations for strong performance in the second half of the year are still valid.”
Most Commented