Dell beats estimates as server sales soar 80%, riding AI wave

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Dell beats estimates as server sales soar 80%, riding AI wave
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Dell said it recorded $3.1 billion of AI server sales in the quarter, up from $1.7 billion in the May quarter.

Dell has emerged as a top vendor for AI-oriented servers, especially those based around Nvidia chips.

reported quarterly results on Thursday that beat Wall Street expectations, powered by an 80% increase in server sales. The stock rose more than 5% in extended trading.Net income climbed 85% to $841 million, or $1.17 per share, from $455 million, or 63 cents per share, in the year-ago period. Revenue increased about 9% from $22.93 billion a year ago.

The standout in Dell's report was Servers and Networking revenue, which includes both AI-oriented servers based around GPUs from Nvidia and AMD, as well as more traditional servers for older applications. It's part of ISG.

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