Key Takeaways

• Dell’s second-quarter results beat expectations on the highest and bottom lines.

• Server and networking revenue rose 80% to a record $7.7 billion.

• AI-optimized server demand rose 23% sequentially.

Dell Technologies (DELL) shares jumped after the bell Thursday following second-quarter revenue that cleared analysts’ expectations on the strength of artificial intelligence (AI) sales.

Revenue rose 9% year-over-year to $25 billion, above the analyst consensus from Visible Alpha. Server and networking revenue rose 80% to a record $7.7 billion, lifted by strong demand for each AI and traditional servers. Diluted earnings per share got here in at $1.17, up year-over-year and narrowly above expectations.

“Our AI momentum accelerated in Q2, and we have seen a rise within the variety of enterprise customers buying AI solutions each quarter,” Chief Operating Officer Jeff Clarke said. AI-optimized server demand, he said, was $3.2 billion, rising 23% sequentially.

Server and networking revenue is a component of Dell’s infrastructure solutions group, which saw revenue rise 38% to $11.6 billion. Client solutions group revenue fell 4% to $12.4 billion.

Shares of Dell, which edged lower during Thursday’s regular trading, rose about 2% early within the after-hours session.

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