Dell Technologies Inc. (NASDAQ:DELL) surged over 9% in early premarket deals, to $6.13, boosted by second-quarter revenue and earnings easily exceeded expectations.
For the quarter, Dell posted revenue of $22.9 billion - down 13% year-over-year but well above the Street expectations of $20.9 billion. Adjusted earnings were $1.74, topping expectations of $1.14. Read more
Dell benefitted from a stronger demand environment for artificial intelligence-optimized servers, according to COO Jeff Clarke.
The company partnered with chipmaker darling Nvidia on Project Helix, an effort to help businesses use breakthrough generative AI.
"AI is already showing it's a long-term tailwind, with continued demand growth across our portfolio," Clarke said.
Case in point, servers and networking revenue for the period was $4.27 billion, up 11% sequentially. Revenue from its client solutions group (ie., Dell’s PC business) rose 8% from the first quarter to $12.94 billion.