Dell Falls After AI Server Sales Fail to Impress Investors

Dell's Disappointing AI Server Sales Impact

Revenue and Profit Overview
Dell reported a revenue increase of 6.3% to $22.2 billion and a profit of $1.27 per share, slightly above analyst expectations.

AI Server Sales Underwhelm
Despite doubling sales of AI servers to $1.7 billion, the growth did not meet the high expectations set by investors, leading to an 18% stock price drop.

Financial Outlook and Market Reaction
Dell raised its fiscal year revenue forecast but the market reacted negatively due to unmet expectations surrounding AI server sales.

PC Market Performance
Dell's PC sales remained stable at $12 billion, with a surprising 3% increase in business PC sales against a backdrop of a recovering PC market.

Dell's revenue increased by 6.3% to $22.2 billion in the period ended May 3. This exceeded analysts' expectations, as they had estimated revenue to be around $21.6 billion. The increase in revenue was driven by growth in Dell's AI server business, with sales from powerful servers equipped to handle artificial intelligence tasks more than doubling from the previous quarter to $1.7 billion.