Dell's AI server sales exceed expectations, but stock falls by 5% in after-hours trading.

From Nasdaq: 2024-11-26 16:26:52

Dell Technologies reported lower-than-expected sales in Q3, with revenue reaching $24.4 billion, missing estimates by $200 million. The PC segment declined by 1% to $12.1 billion, reflecting a slowdown in global PC shipments. However, the infrastructure unit saw a 34% growth to $11.4 billion, driven by demand for AI servers.

Global PC shipments dipped in Q3, impacting Dell’s performance. Despite this, Dell’s AI server sales reached $2.9 billion, exceeding expectations. The company shipped $3.6 billion worth of AI servers in the quarter. Analysts believe strong AI server orders will help offset weaknesses in the PC market.

Dell’s focus on AI-driven infrastructure is paying off, with AI server sales surpassing expectations at $2.9 billion. Despite this success, Dell’s stock fell by 5% in after-hours trading. The company’s ability to navigate challenges in the PC market while capitalizing on AI growth will be crucial for its future performance.



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