Dell Technologies beat Wall Street estimates for first-quarter revenue on Thursday, ending a streak of six-quarters of decline, helped by growing demand for its AI-powered servers.

A surge in demand for high-performance computing and large-scale data centers to support growing adoption of generative AI has spurred investments in AI-capable products, triggering demand for servers offered by companies such as Dell.

The results come days after Dell unveiled a range of AI-enabled PCs powered by Qualcomm processors and said that a new server, which supports Nvidia's latest chips, will be available from the second half of 2024.

Spending on AI servers is expected to surpass $33 billion in 2024, according to research firm International Data Corporation.

The availability of AI PCs is expected to boost demand for PC makers, helping the market rebound from a lull in orders after the pandemic-driven buying spree.

Peer HP Inc beat estimates for second-quarter revenue on Wednesday, signaling a recovery in the PC market.

Dell's revenue for the first quarter ended May 3 rose about 6% to $22.24 billion, beating analysts' average estimate of $21.64 billion, according to LSEG data.

The company's revenue for infrastructure solutions group - which includes its storage, software and server offerings - rose 22% to $9.23 billion, while that of the client solutions group - home to PCs, was flat at $11.97 billion.

  - Reuters