Dell, a computer hardware manufacturer, saw its stock soar by 21.59% to $115.1 in pre-market trading on the New York Stock Exchange, propelled by a favorable quarterly earnings report. This marks a moment of triumph for the tech giant. Dell's shares have more than doubled in value over the last year, fueled by investor enthusiasm for the company's pivotal role in the AI server market. For the fourth quarter of the fiscal year 2024, analysts have estimated Dell's net income at nearly $1.16 billion, or $1.59 per share. This represents a staggering 91% increase from the year prior. The company's annual profit for the last year surged by 32%, reaching $3.195 billion. Despite an 11% drop in the computer hardware manufacturer's quarterly revenue to nearly $22.32 billion and a 14% decline in Dell's annual revenue to $88.425 billion, the company saw a 20% increase in its annual dividends to $1.78 per share. Dell has caught the attention of investors, particularly due to the rising interest in its high-performance servers, which are crucial for enhancing AI workloads. The company's infrastructure division, which encompasses servers, reported revenues of $9.33 billion. This is a 10% increase from the previous quarter, though it marks a 6% decrease year over year, Dell points out. At the same time, Dell is vigorously exploring the potential of AI and initiating operations in this domain. Jeff Clarke, Dell's Chief Operating Officer, believes the company occupies a unique niche within this sector. The significant demand for Dell's AI-optimized servers underscores the company's bright future, with orders amounting to $2.9 billion by the end of 2023. In the last quarter, Dell fulfilled server orders totaling $800 million, Clarke notes.
