Yahoo Finance Dell Technologies (DELL) Rides on Strong Portfolio, Partner Base
Dell Technologies DELL is riding on its strong portfolio and an expanding partner base. Its expanding AI-powered PC portfolio of commercial laptops and mobile workstations is expected to drive top-line growth.
Dell is integrating a neural processing unit (NPU) into its AI PCs. The NPU adds an AI acceleration engine that can take on more dedicated AI tasks, freeing up the CPU and GPU to do other things. This provides a more responsive experience, as well as enhances performance, security, battery life and productivity.
DELL expects that NPU AI PCs will grow from nearly 50 million units in 2024 to more than 167 million in 2027, representing roughly 60% of all PC shipments worldwide. This represents a strong growth opportunity for Dell.
According to the latest report from Gartner, global PC shipments totaled 241.8 million units in 2023, down 14.8% year over year from 2022. In fourth-quarter 2023, global PC shipments totaled 63.3 million units.
Dell had the third spot, trailing Lenovo and HP HPQ. Dell commanded 15.8% of the market share in the fourth quarter, down from 17.2% a year ago. Lenovo commanded 25.6% of the market share, while HP had a market share of 22%.
Dell also announced new solutions to help communications service providers facilitate network cloud and operations transformation to achieve improved economics and agility. Dell Telecom Infrastructure Automation Suite is designed to automate the orchestration and lifecycle management of multi-vendor, network cloud infrastructure at scale.
Moreover, Dell is offering upgraded PowerScale systems that comprise improved storage solutions for higher AI and Generative AI outcomes. Dell PowerScale has an advanced smart scale-out capability to boost single-computer node performance. These utilize GPUs in a much better way, resulting in quicker storage throughput for AI training, checkpointing and inferencing.
Expanding Partner Base Boosts Prospects
Dell recently inked a partnership with NVIDIA NVDA to bolster the Dell Generative AI Solutions portfolio, offering enhanced AI capabilities to organizations worldwide.
The centerpiece of this collaboration is the Dell AI Factory with NVIDIA, touted as the industry’s first end-to-end AI enterprise solution. This comprehensive solution integrates Dell’s compute, storage, client device, software and services capabilities with NVIDIA’s advanced AI infrastructure and software suite.
Leveraging rack-level design and rigorous testing, the Dell AI Factory with NVIDIA offers a seamless platform for converting data into actionable insights and outcomes.
Moreover, Dell's Generative AI Solutions with NVIDIA encompass a spectrum of offerings aimed at modernizing AI infrastructure, accelerating business transformation and enhancing productivity. These solutions cater to diverse AI use cases, spanning model creation, training, inference and data analysis.
Dell Technologies also plans to introduce innovative architectures based on the NVIDIA Grace Blackwell Superchip, which promises to deliver unparalleled performance density for enterprise AI workloads. Dell PowerEdge servers will support new NVIDIA GPU models, offering significant improvements in AI inference performance.
Moreover, Dell inked a partnership with CrowdStrike CRWD to deliver Dell’s Managed Detection and Response services with AI-native CrowdStrike Falcon XDR platform.
The combined Dell-CrowdStrike solution will help customers defend against increasingly complex cyberattacks.
Dell’s strong portfolio and expanding partner base are expected to drive top-line growth. For the first quarter of fiscal 2025, revenues are expected to be between $21 billion and $22 billion, with the midpoint of $21.5 billion indicating 3% growth.
Earnings are expected to be $1.15 per share (+/- 10 cents).
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