Find Out Why Dell’s PC Business is Struggling But AI is Thriving

DELL Technologies Shares Drop 5% After Missed Revenue Estimates

The market for consumer and business PCs might be soft, but Dell Technologies is feeling the heat. Shares of the PC maker dropped about 5% in early trading on Friday after the company reported missed quarterly revenue estimates. Ouch!

Revenue for the third quarter came in at $22.3 billion, a 10% decrease from a year ago. That’s not exactly the kind of news investors want to hear. The client solutions group, which includes PC sales, saw a massive 11% decline to $12.3 billion, well below what was expected. But it’s not all bad news – Dell did see a 9% increase in revenue for servers and networking at $4.7 billion.

On the bright side, Dell’s Chief Operating Officer Jeff Clarke is still optimistic. He attributes the increase in servers and networking revenue to customer interest in generative AI. Could this be a sign of things turning around?

The company’s outlook for the current quarter is less than anticipated at $22 billion, but investors can breathe a sigh of relief because Dell did raise its full-year EPS guidance. That’s a bit of a win, right?

Despite the dip in shares, Dell’s stocks are still near their all-time high. Maybe all hope isn’t lost just yet. Could this be an opportunity for savvy investors to buy low and sell high?

What do you think about Dell’s latest earnings report? Comment below and let us know!

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