Dell Reports $61 Billion in Q2 AI Server Orders Amid Strong Growth
Dell Technologies reported a significant increase in artificial intelligence (AI) server orders during the second quarter, reaching $61 billion compared to $24 billion in the previous quarter. The company's AI server revenue surged 100% year-over-year to $16.4 billion, while traditional servers and networking saw a 122% increase. Total Q2 revenue hit a record high of $47 billion, up 58%, with adjusted earnings per share at $7.04—well above analyst expectations. The growth is being driven by demand from neoclouds, sovereign clients, and large enterprises seeking Dell's AI Factory solutions for on-premises data centers. The company now has an AI backlog of $95 billion, up sharply from the previous quarter. Additionally, traditional hardware sales are benefiting as corporations refresh their infrastructure to accommodate AI workloads. Dell is leveraging its competitive advantages in integration and logistics by offering complete systems tailored for complex deployments. Despite rising memory costs, operating income grew 225% year-over-year due largely to operational scale.
Tickers: $DELL
Topics: AI Servers Corporate IT Refreshing Hardware Demand Margin Expansion