DELL Quick Interpretation: This quarter met expectations, and the guidance for the next quarter is more optimistic.
The company's revenue this quarter increased by $2.7 billion year-on-year, entirely driven by the AI server business. Excluding the AI business, traditional business remained flat year-on-year, with the main highlight still being the AI business.
Compared to this quarter's data, the guidance for the next quarter is even more of a 'pleasant surprise.' The company has raised its guidance for the next quarter to $31-32 billion (previously below $30 billion), which will undoubtedly bring more confidence to the market.
Considering the company's AI business order situation, the backlog orders for this quarter have significantly increased to $18.4 billion.
Dolphin Research estimates that next quarter's AI server revenue will increase to over $9 billion (an increase of more than $3.5 billion quarter-on-quarter), which is also the main reason for the raised guidance for the next quarter.
Previously, the company had raised its long-term guidance at an investor conference, which once pushed the stock price to around $170. However, due to factors such as rising storage prices and fluctuations in AI sentiment, the market has had some concerns about the achievability of the company's long-term guidance.
With this 'impressive' AI order situation, confidence in the company will be boosted once again. For more content, please follow Dolphin Research's subsequent reviews and management discussions. $Dell Tech(DELL.US)
