Dell Technologies Inc

Dell Technologies Inc. delivered mixed results for the previous quarter, with revenues below the analyst consensus. However, it managed to surpass Wall Street’s earnings expectations. In Q3, the company achieved a revenue milestone of $22.3 billion, with commendable profitability and robust cash flow. Within the Infrastructure Solutions Group (ISG), traditional server demand saw improvement throughout the quarter, with AI servers maintaining strong traction across diverse customer segments. Although storage demand met expectations with a decline, ISG revenue remained steady, witnessing sequential growth in servers and networking revenue, driven by the conversion of PowerEdge XE9680 backlog into revenue. Dell’s AI-optimized servers, including XE9680, XE9640, XE8640, R750, and R760xa, contributed significantly, surpassing $0.5 billion in shipments. Demand for these AI servers nearly doubled sequentially, consistently outpacing supply. In the Client Solutions Group (CSG), the momentum observed in June and July extended into August but tapered off later in the quarter. Collaborations with Meta and Hugging Face exemplify Dell’s commitment to facilitating AI deployment and fostering open-source GenAI models on its infrastructure. The recent introduction of ObjectScale XF960, an all-flash scale-out appliance for GenAI and real-time analytics, further reinforces Dell’s commitment to advancing AI capabilities.