Dell Technologies reported its third-quarter earnings, with revenue beating Wall Street estimates, driven by strong demand for servers used in artificial intelligence (AI) applications. However, the company’s shares fell due to concerns over slowing demand for personal computers (PCs) and a cautious outlook for the fourth quarter. Dell’s revenue from its Infrastructure Solutions Group, which includes servers and storage, grew 12% year-over-year, fueled by robust sales of servers used in AI applications. The company’s Client Solutions Group, which includes PCs, saw a 6% decline in revenue due to weakening consumer demand. Dell’s operating income and earnings per share also exceeded analysts’ expectations. Despite the positive results, Dell’s shares fell as the company provided a cautious outlook for the fourth quarter, citing macroeconomic uncertainties and potential further slowdown in PC demand. The company’s focus on AI servers and data center infrastructure positions it well for the growing demand in these areas, but it continues to face challenges in the consumer PC market.
Source: https://www.businessinsider.com/dell-earnings-report-q3-shares-fall-revenue-ai-servers-2024-11