Dell Technologies CEO Michael Dell told CNBC’s Jim Cramer on Tuesday why he thinks the PC refresh cycle is beginning, citing new technology as well as the upcoming “end of life” for Windows 10.
“It’s sort of undeniable now that, that the refresh is starting, Dell said. “There’s a large install base, we’re seeing it definitely start, and now, with all the new capabilities that we have with AI PCs.”
He spoke from Nvidia‘s GTC conference, an annual event where companies display developments in artificial intelligence. Dell Technologies is one of several PC makers to partner with Nvidia, whose new chips will be in some of the outfit’s computers, he said. He also highlighted that Microsoft will stop providing support for its Windows 10 program, saying many computers will need to be replaced. These developments bode well for Dell Technologies’ commercial business, Dell continued.
Dell also discussed the company’s infrastructure arm, saying that when it comes to AI servers, “they’re kind of rate dilutive, but they’re dollar accretive.” He said he expects the overall margin rate will be “pretty steady” from last year to this coming year for the full year, even as Dell Technologies increases the amount of AI it’s selling.
Although the company has seen shares fall recently, Dell said he is focused on the long term, and he’s confident about the future. He also offered an optimistic outlook on new AI technology, which he said will drive growth in the overall economy.
“All you really have to know about all this AI stuff is there’s an explosion in data because everything…is generating data and connected, and there’s incredible advances in the algorithms,” Dell said. “And so that ultimately drives enormous demand for servers and data storage, those are the businesses fundamentally that we’re in.”
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