Dell ( DELL ) posted third-quarter revenue that fell short of analysts’ expectations, sending shares lower after the closing bell Tuesday.
The server and personal computer maker delivered revenue of $24.4 billion, a 10% rise year-over-year, and below the analyst consensus from Visible Alpha. Its net income of $1.13 billion or $1.58 per share was up from $1 billion or $1.36 per share a year earlier, beating estimates.
Server and Networking Revenue Climbs on AI Demand
Server and networking revenue rose 58% to $7.36 billion, driven in part by demand for artificial intelligence (AI) servers. Server and networking revenue is part of Dell’s infrastructure solutions group, which saw revenue rise 34% to $11.37 billion.
The results come after Dell, which makes servers that utilize Nvidia ( NVDA ) AI chips, was mentioned during the chipmaker’s earnings call last week.
Shares of Dell fell 6% in extended trading following the release. They were up 85% from the start of the year through Tuesday’s close.