Dell deepens AI push with new PCs, Nvidia-powered servers

Dell Technologies (DELL.N) has unveiled a new lineup of AI-powered PCs featuring Qualcomm processors and announced a new server supporting Nvidia’s (NVDA.O) latest chips, available from the second half of 2024. These announcements were made at an event in Las Vegas on Monday, as Dell aims to maintain its strong presence in the lucrative AI server market and anticipates a recovery in the PC market following a post-pandemic decline in orders.

The new AI-enabled PCs will be equipped with Qualcomm’s Snapdragon X series chips, which include neural processing units (NPUs) for handling complex AI tasks. Two of the five new PC models are available for pre-order starting Monday, with the remaining models set to launch in the coming months.

This launch coincides with Microsoft’s (MSFT.O) annual Build event, where CEO Satya Nadella introduced “Copilot+” PCs. Dell, along with partners Qualcomm, Intel (INTC.O), and Advanced Micro Devices (AMD.O), will play a key role in developing these AI-enhanced computers.

Qualcomm’s shares rose nearly 2% to a record high, while Dell’s shares fell about 2.6%.

AI Server Boom

Dell also introduced a new server compatible with Nvidia’s Blackwell chips, featuring liquid cooling technology, which is more energy-efficient than traditional air cooling. Arthur Lewis, president of Dell’s infrastructure solutions group, stated in an interview that these Nvidia-based servers are the fastest-growing product in the company’s history.

According to the International Data Corporation (IDC), spending on AI servers is expected to exceed $33 billion in 2024. Lewis noted that much of this investment comes from smaller companies just beginning to adopt new technologies, and Dell does not foresee AI investments significantly affecting spending on traditional servers. This contrasts with the broader market trend, where demand for traditional servers is uncertain as enterprises prioritize AI server investments.

Dell is set to report its quarterly earnings on May 30, with analysts predicting strong demand for both AI PCs and AI servers to boost the company’s performance.