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Dude, you're not getting a Dell. So why is its stock soaring?

·1 min

It’s not a good time to be selling PCs, as Dell has been struggling with sinking demand for the past few years. However, Dell’s stock still rose 20% in after-hours trading due to buzz surrounding artificial intelligence. While Dell’s PC business is lagging, the company experienced strong demand for servers to run AI workloads in the last quarter. Dell’s infrastructure unit generated $9.3 billion in revenue with a 10% growth from the previous quarter, primarily driven by AI-optimized servers. This presents an opportunity for Dell as demand for hardware to support AI surpasses supply. Despite the decline in Dell’s primary PC business, PC shipments increased in the fourth quarter of 2022 for the first time in eight quarters of decline.