US Stocks Move | Q2 AI server profit margin narrows, raising concerns; Dell Technologies (DELL.US) drops nearly 10%
According to Golden Ten Data, on Friday, Dell Technologies (DELL.US) fell nearly 10%, closing at $121.06. In terms of news, the company’s second-quarter sales grew by 19% to $29.8 billion, higher than the average expectation of $29.2 billion. Adjusted earnings per share were $2.32, surpassing analysts’ average estimate of $2.30. The financial report showed that sales of artificial intelligence (AI) servers declined compared to the previous quarter, and the profit margin of these high-performance machines was lower than analysts’ expectations. In the second quarter ended August 1, Dell recorded $5.6 billion in AI server orders, down from $12.1 billion in the previous quarter. The company shipped servers worth $8.2 billion this quarter, with a backlog of orders valued at $11.7 billion at the end of the quarter.
In a statement on Thursday, Dell said its infrastructure division (including server and network sales) had an operating profit margin of 8.8% this quarter. Analysts’ average expectation was 10.3%. Dell’s overall adjusted gross margin was 18.7%, narrower than the same period last year and also below analysts’ expectation of 19.6%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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