Dell Technologies' shares increased more than 16 percent in after-hours trading after the business exceeded Wall Street projections for 2017 revenue and earnings. The company was counting on the demand for its artificial intelligence servers.

In order to fulfil the demands of high-performance computing, Nvidia, a chip designer, supplies graphics processing units (GPUs), which helps Dell meet the growing demand for its AI servers.

“Our strong AI-optimized server momentum continues, with orders increasing nearly 40 percent sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion," Chief Operating Officer Jeff Clarke says.

As the surge in demand for PCs and gadgets from people working from home waned, the PC market is also beginning to show signs of recovery. This drop in revenue started in 2022 and came from the heights touched during the epidemic.

"We remain bullish on the coming PC refresh cycle and the longer-term impact of AI on the PC market," CFO Yvonne McGill says.

Additionally, shares of rival server manufacturer Hewlett Packard Enterprise fell 3.7 percent after-hours trade after the company predicted quarterly revenue that fell short of Wal Street projections.

After five quarters of loss in revenue, Lenovo Group, a competitor, posted solid quarterly earnings last week.
According to data analysis firm Canalys, the worldwide PC market is expected to rebound better in 2024 after reaching 3 percent growth again in the fourth quarter of 2023. This was announced in January.

According to estimates, Dell expects sales for its current fiscal year to range from $91 billion to $95 billion, with the midpoint of this range above analysts' average forecast of $92.07 billion.