Dell Technologies (NYSE:DELL) has revealed a suite of AI-enabled PCs powered by Qualcomm processors and announced the forthcoming availability of a new server supporting Nvidia’s latest chips, set for the second half of 2024.
These unveilings took place at an event in Las Vegas on Monday, where Dell aimed to sustain its momentum in the profitable artificial intelligence server market while preparing for an anticipated rebound in the PC market this year following a post-pandemic decline in orders.
The AI-capable PCs will harness the power of Qualcomm Snapdragon X series chips, featuring neural processing units (NPUs) dedicated to handling complex AI tasks. Two of the five new PCs are immediately available for pre-order, with the remaining models set to roll out in the coming months.
This announcement coincides with Microsoft’s launch of its annual Build event, which is anticipated to introduce new iterations of the company’s Surface Pro tablet and Surface Laptop, both powered by Qualcomm chips based on Arm architecture.
AI Server Advancements
In addition to its AI-enabled PCs, Dell also unveiled its latest server compatible with Nvidia’s Blackwell chips. This new server introduces liquid cooling technology, a departure from traditional air cooling methods known for their higher power consumption.
Arthur Lewis, president of Dell’s infrastructure solutions group, highlighted the rapid adoption of Dell’s Nvidia-based servers, deeming them the fastest-growing product in the company’s history. Research firm International Data Corporation (IDC) projects that spending on AI servers will surpass $33 billion by 2024.
Despite this growth, Lewis noted that Dell does not anticipate AI investments to significantly impact expenditure on traditional servers, particularly as many smaller companies are still in the early stages of adopting AI technologies.
Anticipated Impact on Dell’s Earnings
Dell is poised to report quarterly earnings on May 30, with analysts expecting a boost in demand for the company’s products driven by both AI PCs and AI servers. These advancements align with market trends, where enterprises prioritize investments in high-performance AI servers over traditional server infrastructure.
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