Dell announced its financial results for the fourth quarter of fiscal year 2025, and the performance has attracted market attention. For the quarter, Dell's revenue was $23.9 billion, slightly below analysts' expectations of $24.55 billion, but adjusted earnings per share came in at $2.68, above Wall Street's expectations of $2.53. Despite mixed fourth-quarter results, Dell's share price has doubled over the past two years thanks to strong demand for AI systems.
In the AI server business, Dell has achieved outstanding results. In fiscal year 2025, Dell AI-optimized server sales will be approximately $10 billion. Looking ahead to the new year, Dell expects AI system sales to reach $15 billion. As of the end of January, Dell had a $4.1 billion backlog of AI server orders, including the sale of Nvidia-based servers to Elon Musk's xAI. Dell's server division, Infrastructure Solutions Group, had a strong fourth quarter, with sales up 22% to $11.35 billion, driving overall revenue growth of 7%.
As can be seen from Dell's financial report, the AI server market is in a stage of rapid growth. This trend is reflected around the world, and China's AI server market is no exception. In recent years, with the wide application of artificial intelligence technology in China, the market demand for AI servers has continued to rise. Internet giants are increasingly relying on AI servers for services such as intelligent recommendation, search engine optimization, speech recognition, and image recognition. Financial institutions use AI servers to conduct operations such as risk assessment and robo-advisory. In the medical field, AI servers help with disease diagnosis, drug research and development, and more. According to relevant data, the scale of China's AI server market is expanding year by year, and the growth rate remains at a high level.
Figure: Dell looks ahead to the AI server market (Image:Dell)
In terms of technological breakthroughs, China's enterprises and scientific research institutions are also actively making efforts. In terms of chip technology, although foreign companies such as Nvidia currently occupy an important position in the field of AI chips, some companies in China are also increasing R&D investment. For example, Cambrian has launched a series of chip products for artificial intelligence computing, which have efficient computing power in specific scenarios and gradually break the monopoly of foreign chips. In terms of server architecture design, domestic manufacturers pay attention to improving the overall performance and energy efficiency ratio of the system. By optimizing the cooling system inside the server and increasing the data transfer speed between hardware, the energy consumption is reduced and the computing efficiency is improved. The AI server developed by Inspur Information adopts innovative liquid cooling technology, which effectively solves the heat dissipation problem during high-load operation and improves the stability and reliability of the server.
In addition, China has also made many breakthroughs at the software level of AI servers. The self-developed operating system and deep learning framework have been continuously improved, improving the adaptability and ease of use of AI servers. Huawei's Pangu model, relying on Huawei's AI servers and self-developed Ascend chips, has demonstrated strong application potential in multiple fields, achieving synergistic development of software and hardware.
Dell's outstanding performance in the AI server market reflects the vigorous development of the industry, and China's AI server market is also promising. With the continuous emergence of domestic technological breakthroughs, it is expected to occupy a more important position in the global AI server market in the future, promoting the artificial intelligence industry to a new height.
