Dell Says Servers, Not PCs, Are Its Main Growth Engine in the AI Era
The unit offering servers, data storage, and other office equipment is projected to expand by approximately seven percent in the coming years
Dell anticipates a steady revenue increase of around 2.5 percent in the PC segment, despite a previous decline in sales.
The growing demand for artificial intelligence (AI) is a major driver of growth in the data center technology sector
Jeff Clarke, Dell's Chief Operating Officer, emphasized the additive nature of AI.
Dell has seen substantial demand for servers with high-capacity storage and graphics processing units, driven by AI applications.
The company had over $2 billion in orders for AI-supported servers in August, indicating strong demand in this area.
Dell continues to face challenges due to the shortage of high-power CPUs, which affects other parts of the business as well.
Despite the challenges in the PC market, Dell remains committed to selling PCs, which still generate a significant portion of its revenue, accounting for over 50% of total sales.
The company plans to buy back additional stock and has raised its long-term earnings growth estimate