Dell Technologies posted a 39 percent rise in revenue in the latest quarter, helped by a sharp increase in AI demand. The results beat Wall Street expectations.

The company said Dell's fourth-quarter revenue came to $33.38 billion, well above an estimated $31.67 billion. It posted earnings per share of $3.89. Revenue in the AI server segment surged 342 percent year on year, driving the results.

Fourth-quarter revenue from AI-optimised servers rose 342 percent from a year earlier to $8.95 billion, and total revenue in the server and networking segment also came to $14.8 billion. Overall, Dell's Infrastructure Solutions Group revenue totalled $19.6 billion, and revenue from the PC segment was tallied at $13.49 billion.

Dell set a target of $12.89 billion in operating profit and revenue of $138.0 billion to $142.0 billion this year.

Dell shares rose 11 percent after the earnings announcement, and analysts forecast that rising demand for AI infrastructure will be a sustained growth driver for the company.

Dell maintained a 20.5 percent operating profit margin despite pressure from rising memory chip prices, showing strength in cost management, SiliconANGLE reported.