Reuters Dell Technologies forecast annual revenue and profit above Wall Street estimates on Thursday, betting on demand for its artificial intelligence servers, sending the company39;s shares up more than 16 in afterhours trading.

Dell is a beneficiary of rising demand for its AI servers that are equipped with chip designer Nvidia39;s graphics processing units GPUs, which helps to meet the demands of highperformance computing.

Our strong AIoptimized server momentum continues, with orders increasing nearly 40 sequentially and backlog nearly doubling, exiting our fiscal year at 2.9 billion, Chief Operating Officer Jeff Clarke said in a statement.

The PC market is also showing signs of recovery following a slowdown in revenue that began in 2022 from the peaks touched during the pandemic, as the boom in workfromhome demand for PCs and electronics faded.

We remain bullish on the coming PC refresh cycle and the longerterm impact of AI on the PC market, CFO Yvonne McGill said on a postearnings call.

Also in afterhours trading on Thursday, shares in rival server maker Hewlett Packard Enterprise dropped 3.7 after it forecast quarterly revenue below Wall Street estimates.

Another competitor, Lenovo Group last week reported strong quarterly earnings, with revenue returning to growth after five quarters of decline.

The global PC market returned to 3 growth in the fourth quarter of 2023 and is now poised for a stronger recovery in 2024, data research firm Canalys said in…