AI server demand drives staggering revenue growth for Dell and its stock soars
Dell Technologies Inc. delivered its fastest rate of revenue growth since returning to the public markets more than seven years ago as it delivered stellar first-quarter financial results that crushed analysts’ expectations.
The computer server and infrastructure marker also reported rising profitability, and its stock climbed by an impressive 38% in extended trading today.
The results came in as NetApp Inc., another key data center infrastructure player, also delivered strong quarterly numbers, sending its stock higher in late trading too.
However it was Dell that earned the lion’s share of the plaudits today. The company delivered earnings before certain costs such as stock compensation of $4.86 per share on revenue of $43.84 billion, up by a staggering 88% from the same period one year ago. That’s a truly astonishing leap for such an established company, and it crushed Wall Street’s targets. Analysts were looking for earnings of just $2.94 per share on much lower sales of just $35.43 billion.
