Shulou(Shulou.com)12/24 Report--

On the afternoon of December 1, the server business growth driven by artificial intelligence (AI) is becoming Dell's new business growth pole. This morning, Dell Technology Group reported revenue of $22.3 billion, operating profit of $1.5 billion and non-GAAP operating profit of $2 billion for the third quarter of fiscal 2024.

Among them, due to the increase in software and hardware maintenance agreements, Dell's remaining performance value at the end of the quarter was $39 billion, recurrent revenue was $5.6 billion, up 4 per cent from a year earlier, and total deferred revenue was $29.1 billion, up 7 per cent from a year earlier. The company has a cash and investment balance of $9.9 billion.

Of Dell's two core businesses, Infrastructure Solutions Group (ISG) had revenue of $8.5 billion in the third quarter. Server and network revenue reached $4.7 billion, driven by artificial intelligence (AI) to optimize servers. Revenue from the storage business is $3.8 billion, with strong demand for unstructured data solutions and data protection. Operating profit is $1.1 billion. In addition, client Solutions Group (CSG) third-quarter revenue was $12.3 billion, commercial customer revenue was $9.8 billion, and consumer revenue was $2.4 billion. Operating profit is $925 million.

In response to the above performance, Jeff Clarke, vice chairman and chief operating officer of Dell Technology Group, highlighted: "our server and network business has achieved 9 per cent month-on-month growth driven by customer interest in generative AI. We expect revenue growth to be boosted by business into fiscal year 2025."

Since the beginning of this year, with the step-by-step development of the AI model, it has attracted wide attention all over the world. In the field of traditional PC and other consumer electronics, the new AI PC has gradually become the focus of PC manufacturers. Dell has attracted a large number of investors due to the surge in demand for high-performance servers running artificial intelligence workloads, and its shares have risen more than 94% so far this year (as of Thursday's close), making it a hot investment target.

In terms of specific product portfolios, the Dell spanning AI solution portfolio extends new local products to simplify the implementation of spanning AI through high-performance IT infrastructure, multi-cloud access, and professional services. In addition, Dell also cooperates with representative companies in the field of AI, such as Meta and Hugging Face, to help customers use Dell generated AI product portfolio to deploy Meta Llama 2 models locally, create, fine-tune and implement their own open source generated AI models, and constantly broaden the ecological boundaries of enterprise AI.

Since entering China for 25 years, the importance of the Chinese market to Dell is self-evident. In response to a series of recent market rumors about Dell, Dell recently made a formal response, emphasizing the importance of the Chinese market, saying that "the rumors are all rumors and will adhere to the purpose of 'promoting human progress with scientific and technological innovation'. Always committed to Chinese employees, customers and partners."

As the State Council issued 24 policies and measures to optimize the environment for foreign investment in the second half of the year, the development trend of foreign enterprises in China is improving. In the data released by the General Administration of Customs for the first three quarters of this year, the import and export quota has increased. For Dell, with the growing potential of servers and other businesses driven by artificial intelligence (AI), it is expected to usher in new development opportunities of its own in the new era of digital economy.

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