Dell Technologies (DELL Quick QuoteDELL - Free Report) is expanding its server portfolio with the introduction of its latest-generation servers, the new PowerEdge R670 and R770 CSP Edition servers.

The Dell PowerEdge R670 and R770 CSP Edition servers are designed to make it easier for organizations of all sizes — ranging from large cloud service providers to small business owners and network edge operators — to manage their operations.

Focusing on performance and efficiency, these R670 and R770 CSP Edition servers deliver unparalleled computing power for a wide array of workloads that include high-density cloud computing, virtualization and data analytics.

Powered by the advanced Intel (INTC Quick QuoteINTC - Free Report) Xeon 6 Efficient core processor, these servers also promise up to 2.3 times greater performance per rack compared with their predecessors, allowing users to easily meet the demand of modern computing environments.
 

With features like Smart Cooling technology and a compact form factor these servers offers enhanced efficiency and simplified deployment and serviceability, making it an ideal choice for specialized data centers.

Dell’s Expanding Portfolio Aids Prospect

Dell Technologies’ shares are up 75.3% year to date compared with the Zacks Computer & Technology sector's rise of 12.5%. The uptick can be attributed to Dell’s commitment to meeting the evolving demands of its customers across various sectors of the market.

Building on this momentum, Dell also introduced the Data Centre-Modular Hardware System (DC-MHS) within the power edge line up collaborating with industry leader like Intel to standardize servers and enhance interoperability across data centers and edge environments.

DELL is addressing the needs of smaller businesses and remote offices with the compact yet powerful Dell PowerEdge T160 and R260 servers, including Intel Xeon E-2400 Processors for increasing the performance compared with the previous generation.

Dell is also benefiting from strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications. Its PowerEdge XE9680 AI-optimized server is very much in demand.

In the fourth quarter of fiscal 2024, Dell enhanced its generative AI solutions offerings to include support for the AMD Instinct MI300X accelerator in PowerEdge XE9680 servers and introduced the Dell Validated Design for Generative AI with AMD ROCm powered AI frameworks.

Expanding partner base that includes the like of NVIDIA (NVDA Quick QuoteNVDA - Free Report) and Nokia (NOK Quick QuoteNOK - Free Report) has been a major growth driver.

In March, Dell announced an expanded collaboration with NVIDIA, launching the Dell AI Factory with NVIDIA, an end-to-end AI enterprise solution supported by high-quality data, new GPU models and professional services, aiming to accelerate business transformation through generative AI technologies.

In the fiscal fourth quarter, Dell announced its partnership with Nokia to serve as its preferred infrastructure partner, transitioning Nokia AirFrame customers to Dell PowerEdge servers with Dell global services and support while also offering Nokia’s Digital Automation Cloud solution with Dell NativeEdge for enterprises.

This Zacks Rank #3 (Hold) company’s strong portfolio and expanding partner base are expected to drive top-line growth. For first-quarter fiscal 2025, revenues are expected to be between $21 billion and $22 billion, with the midpoint of $21.5 billion indicating 3% growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for revenues is pegged at $21.75 billion, suggesting growth of 3.96% year over year.

Earnings are expected to be $1.15 per share (+/- 10 cents). The Zacks Consensus Estimate for earnings is pegged at $1.20 per share, unchanged in the past 30 days.