Dell Soars to Record Fueled by Excitement for AI Prospects
- Commercial and consumer personal computer revenue drops 12%
- Company raises its dividend by 20% to 44.5 cents a share
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Dell Technologies Inc. surged to a record high after reporting better-than-expected sales and profit, fueled by demand for information technology equipment to handle artificial intelligence work.
Known for its PC business, Dell has attracted investor attention over the last year due to a spike in interest for its high-powered servers needed to run AI workloads. The company’s infrastructure unit, which includes servers, reported revenue of $9.33 billion in the fiscal fourth quarter, topping estimates. A sequential increase in sales from the previous period was “driven primarily by AI-optimized servers,” Dell said Thursday, though the unit’s total revenue declined 6% from the same quarter a year earlier.