Dell and Samsung Grab First-Class Tickets For AI Hype Train

Dell and Samsung are the latest beneficiaries of the current frenzy of speculation surrounding anything AI related, with both vendors seeing a rise in share prices related to their future AI prospects. From a report: Shares in Dell were said to be up 8 percent in extended trading following the Round Rock company releasing its results for the second quarter of its financial year 2024. These showed that revenue was $22.9 billion, down 13 percent on the same period last year. However, this figure was also up 10 percent on the previous quarter, with the company attributing this growth to rising demand for AI-optimized servers, as well as its PowerStore and PowerFlex storage systems. AI accounted for 20 percent of server revenue in the first half of the year, Dell said. Similarly, Dell said it is seeing growth in demand for its workstations designed to help organizations run complex AI workloads locally, with its commercial client revenue hitting $10.6 billion. This accounted for the lion's share of the Client Solutions Group second quarter revenue of $12.9 billion, which was down 16 percent year-on-year but up 8 percent on the last quarter. Dell vice chairman and chief operating officer Jeff Clarke said that the company continued to focus on the most profitable segments of the market where he claimed Dell has a leading position.

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