Dell’s quarterly revenue misses estimates on PC weakness
Live Mint-Dell missed Wall Street expectations for third-quarter revenue on Tuesday, weighed down by weaker demand for its traditional PCs and stiff competition from rival server makers, sending its shares down more than 10% in extended trading. Despite booming demand for Dell's AI-optimized servers used to handle large AI workloads, its traditional PC segment has been facing stiff competition from rivals and weaker consumer spending amid an uncertain economy. "Interest in our portfolio is at an all-time high, driving record AI server orders demand of $3.6 billion in Q3 and a pipeline that grew more than 50%," Dell's Chief Operating Officer Jeff Clarke said on Tuesday. As Dell's server revenue grows, investors are keenly eyeing the company's costs after it flagged in May that higher expenses to build AI-heavy servers and competitive pricing would hurt its margins. Revenue from Dell's infrastructure solutions group, which includes its AI servers, rose 34% to $11.37 billion, compared with estimates of $11.35 billion.
History of this topic
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