(Reuters) -Dell Technologies beat Wall Street estimates for fourth-quarter revenue and profit on Thursday helped by demand for its AI servers, sending its shares up 19% in after hours trading.

The PC market is showing signs of green shoots following a slowdown in revenue that began in 2022 from the peaks touched in the middle of the pandemic, since the boom in work-from-home demand for PCs and electronics faded.

Dell generally is a beneficiary of rising demand for its AI-servers that are equipped with chip designer Nvidia’s graphics processing units (GPUs), which helps in meeting the demands of high-performance computing.

“Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal yr at $2.9 billion,” Chief Operating Officer Jeff Clarke said in a press release.

Last week, Lenovo Group reported stronger-than-expected earnings inside the third quarter, with revenue returning to growth after five quarters of decline.

The worldwide PC market returned to a few% growth inside the fourth quarter of 2023 and is now poised for a stronger recovery in 2024, data research firm Canalys said in January.

Dell posted revenue of $22.32 billion for the quarter ended Feb. 2, barely ahead of analysts’ average estimates of $22.16 billion, in response to LSEG data.

Excluding items, its fourth-quarter profit per share came in at $2.20, compared with estimates of $1.73.

Revenue on the infrastructure solutions group, which includes its storage, software and server offerings, fell about 6% to $9.33 billion, while that of the client solutions group – home to PCs – fell nearly 12% to $11.72 billion.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber)