2023-09-01 02:20:40
© Reuters. Dell logo 11/24/2021 REUTERS/Andrew Kelly/Archive
(Reuters) – Dell Technologies Inc raised its full-year revenue and profit forecast on Thursday, helped by an artificial intelligence (AI) boom and stabilizing demand for computer hardware and server products after a long period of fall.
The results are the latest sign that the slowdown in technology spending may be coming to an end, after Cisco (NASDAQ:), a major supplier of networking equipment, also beat estimates for quarterly revenue.
The company forecast third-quarter revenue of between $22.5 billion and $23.5 billion, higher than analyst estimates of $21.67 billion, according to Refinitiv data. Dell expects earnings of $1.45 per share, compared with estimates of $1.38.
For the full year, Dell now expects revenue of between $89.5 billion and $91.5 billion, and profit of $6.30 per paper.
The company expects a boost in demand for its PowerEdge servers and generative AI designs with Nvidia due to increasing investments in AI by big tech companies.
“AI is already proving to be a long-term tailwind, with continued growth in demand across our portfolio,” said COO Jeff Clarke.
Dell reported second-quarter revenue and earnings per share above analyst estimates.
Second-quarter server and networking revenue was $4.27 billion, up 11% from the first quarter, driven by higher demand for AI-optimized servers, according to Dell.
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