The mesmerizing power that AI has over Wall Street was on display again last night as Dell tackled the massive order backlog for "AI-optimized" servers rather than 2024's overall declining sales, and its share price soared.
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"Our strong AI-optimized server momentum continues, with orders increasing nearly 40 percent sequentially and backlog nearly doubling, leaving our fiscal year at $2.9 billion," Dell chief operating officer Jeff Clark said in a statement. The company said it shipped $800 million in servers built for AI in its last quarter.
Dell shares then lit up, sending the stock of the PC-cum-tech infrastructure maker swelling about 16 percent in after-hours trading.
This despite a somewhat rocky ride for Dell's financial results in the 2024 fiscal year, which ended on February 2. According to the unaudited results, fourth-quarter revenue fell 11 percent year over year to $22.32 billion and for the 12 months was down 14 percent to $88.42 billion.
