Dell Technologies has said that strong revenue of almost $23 billion recorded in the second quarter was in part driven by growing demand for AI products and services.

Dell’s servers and networking revenue was $4.3 billion, which the company ascribed to “continued demand growth in AI-optimised servers”.

Calling the second quarter results “extraordinary”, Jeff Clark, vice chairman and chief operating officer of Dell, said it is continuing to focus on the most profitable segments of the market where it has a “leading position”.

“Demand for our proprietary software-defined storage solution has now grown eight consecutive quarters, and AI is already showing it's a long-term tailwind, with continued demand growth across our portfolio," he said.

Dell recently announced a range of new technologies designed to help companies quickly build generative AI (GenAI) models on-premise.

In collaboration with NVIDIA, the company said its tech would span IT infrastructure and professional services to simplify help in simplifying the adoption of GenAI with large language models.

The chipmaker’s Infrastructure Solutions Group reported second quarter revenue of $8.5 billion, while PowerStore – Dell’s midrange storage array division – and its software-defined storage arm PowerFlex recorded revenues of $4.2 billion.

Commenting on the results, Dell’s chief financial officer Yvonne McGill said that the second quarter performance underscored the power of its model to generate cash in a “sequential growth environment”.

"Revenue grew 10 per cent sequentially to $22.9 billion, with strong cash flow from operations of $3.2 billion in Q2 and $8.1 billion over the last 12 months,” she said.

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