Dell shares fell nearly 11% on October 30, a day after Intel said memory prices and tight supply were slowing PC demand, and Intel expects global PC shipments to drop 12% this year and 10% in 2027. Dan Niles of Satori Fund argues that chip supply is much closer to demand than companies assume, citing Dell’s inventory of $21.3 billion at July 31, 2026, nearly three times a year earlier, while quarterly revenue rose 58% to $47.0 billion. Most of that inventory is parts not yet built into products, and payables rose $16.2 billion in the first half of fiscal 2027, suggesting suppliers were willing to sell on credit. The article notes that if supply catches up, NVIDIA’s gross margin, which has held near 75% for three quarters, could come under pressure. Michael Dell has said the memory shortage could last about four years.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
NVDADELLsemiconductorsmemory chipssupply chain
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/02/2026 | 202.06 |
| Change that session | -1.26% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- SK Hynix Sees the Memory Shortage Lasting Through 2030. 2 Memory Stocks to Buy and Hold Until Then.
SK Hynix expects memory demand to keep exceeding supply through 2030, after posting record third-quarter revenue of 104.6 trillion won, up 328% year over year, with an 80% operating margin. Its long-term contracts with 14 major customers cover over 50% of total production capacity for 2027 and 2028, though quarterly revenue and profit growth is slowing. Micron expects supply to stay short of demand in 2027 and 2028 and has 26 multiyear take-or-pay agreements covering over 35% of its revenue through 2030, backed by $32 billion in financial commitments. The author argues both stocks trade below 6 times expected earnings, a price that implies profits will fall well before 2030, and points to the 2018 shortage, when SK Hynix's operating profit dropped 87% the following year. The author believes both stocks are worth holding until 2030 but expects at least one steep decline along the way.
- AI supply chain strain means Dell wants buyers planning earlier
Demand for AI infrastructure has outpaced supply, and Dell advises customers to plan deployments early rather than waiting for end-of-quarter discounts. David Schmoock, Dell's senior vice president of global revenue operations, said shortages have spread from memory, storage and CPUs to rack-level cooling, networking and power, so Dell is asking customers to share deployment plans earlier. He warned that late-arriving projects could be delayed by 60, 90 or 120 days, with cost and business impacts. He also advised companies to redesign workflows before fixing the data layer, and to use older, open-source or machine learning models where frontier models aren't needed to manage token costs.
- Dell Technologies (DELL) Lands Core AI Infrastructure Role In New Industrial Platform
Honeywell has selected Dell Technologies (DELL) as a core AI infrastructure partner for its new Forge Cognition platform, working with NVIDIA to power building and industrial automation across data center and edge locations. Early pilots are running at major global facilities, applying agentic AI and digital twin tools to physical operations. The analysis says the partnership supports the bull case that Dell's infrastructure is being built into long-life physical operations projects, but notes that tight component supply and mid-single-digit margins on AI GPU systems could affect how quickly Dell's AI backlog turns into richer storage and services revenue. It cites a $594 fair value for Dell in its own narrative.
- Global smartphone shipments drop 20% in third quarter
Global smartphone shipments fell 20% year over year in the third quarter to their lowest level for that period since 2012, according to preliminary Counterpoint Research estimates. The drop stems from rising memory chip costs and supply shortages, as AI infrastructure projects absorb much of the memory supply, leading manufacturers to raise prices and prioritize profit over volume. Consumers are keeping phones longer and showing more interest in refurbished devices, according to Counterpoint's Shilpi Jain. Samsung kept the top spot with a 23% share even as its shipments fell 3%, while Apple took 22%, its first time above 20% in a third quarter despite a year-over-year decline. Xiaomi's shipments dropped more than 30%, cutting its share to 10%, as it reduced lower-priced devices and some overseas markets to protect margins.
- Chip shortage impact on the tech sector, Burger King and Starbucks turnarounds
Yahoo Finance Executive Editor Brian Sozzi examines Google's (GOOGL, GOOG) striking P/E ratio and how a chip shortage is affecting Intel (INTC) and Sandisk (SNDK). He also interviews Burger King CEO Tom Curtis (QSR) and Starbucks CEO Brian Niccol (SBUX) about food innovation and turnarounds at their brands.
- Latest News In AI Chips - AI Demand Spurs Semiconductor Market Transformation 2027 Predictions
TechInsights released its 2027 Outlook Report, identifying five trends that could reshape the semiconductor market as AI-driven demand tightens supply chains and affects chip architecture and manufacturing investment. Key issues include AI rapidly depleting high-bandwidth memory (HBM) supply, rising semiconductor manufacturing emissions projected to hit a record high by 2027, and the growing importance of advanced packaging. The report also notes that cost-conscious consumers could influence market dynamics as memory prices rise. In trading, NXP Semiconductors rose 5.7% to finish at $266.00 after positive fourth-quarter earnings guidance, NVIDIA ended at $213.66, down 0.8%, and Marvell Technology fell 13.2% to $218.34; the article notes Marvell is in advanced talks to acquire Lumentum.
Related markets
Latest news
- Why I Still Wouldn't Buy Nike Stock in November
Nike's dividend yield is 4.2%, but the author argues that more factors than yield need to be considered. For fiscal 2027 first quarter, revenue fell 4% to $11.2 billion and net income dropped 2% to $712 million, while Nike announced a restructuring plan that may lead to layoffs and forecast a high-single-digit percentage revenue decline for the full year. The stock is down about 39% so far in 2026. Still, Nike has paid and increased its dividend for 24 consecutive years, and the CFO stressed that the dividend is a significant priority. The author still does not consider Nike a suitable choice for new positions in November or for the rest of the year, as the market continues to view it as a growth stock and a falling share price could erode the dividend's appeal.
- What analysts are saying as Apple's stock falls after earnings report
Apple shares fell 4.5% in premarket trading as investors were disappointed by the company's gross margin outlook and slowing growth in services revenue.
- North Korea Denies $6.3B Binance Hack, Calls FBI Finding a 'Political Provocation'
North Korea has denied involvement in the Binance hack, with Kim Yo Jong calling U.S. accusations a “sinister” attempt to damage the country's image and criticizing the Trump administration's plan to use confiscated crypto as a strategic reserve. The FBI attributed the theft to TraderTraitor, the group it also blamed for the $1.5 billion Bybit hack in February 2025, with about $2.85 billion of the $6.43 billion stolen frozen or seized. The funds are being laundered across about 12,000 wallets, with a new wallet created roughly every 25 seconds. Binance said net withdrawals reached $4.72 billion since withdrawals resumed on Sunday, hourly deposits exceeded withdrawals by late Monday, and it has covered about 95% of stolen assets.
- Why Palantir stock doesn't deserve to be caught up in the AI stock meltdown
Palantir (PLTR) shares fell about 6% in premarket trading on Tuesday, though analysts largely defended the stock after a third-quarter report that beat expectations. Revenue growth accelerated to 96% from 93% last quarter, US commercial sales rose 148% year over year, and commercial revenue surpassed government revenue for the first time. Palantir raised full-year adjusted operating profit guidance by $354 million to $5.247 billion and free cash flow guidance by $300 million to $4.9 billion. D.A. Davidson's Gil Luria called Palantir the best story in software, while Yorkville Ives' Dan Ives said 2027 is the inflection year for AI monetization and that Palantir remains his top pick in software.
- IonQ vs. Rigetti Computing: Which Is the Better Quantum Computing Stock to Own for the Next 5 Years
The article compares IonQ, which uses trapped-ion technology, with Rigetti Computing, which uses superconducting qubits. IonQ unveiled a 256-qubit computer this year, aims for two million qubits by 2030, and reached 99.99% two-qubit gate fidelity; its second-quarter revenue soared 287% to $80 million. Rigetti's Cepheus-1-108Q operates at a 60-nanosecond gate speed and its latest revenue rose 185%, but more than 90% of its revenue comes from government contracts, and it targets 1,000 qubits within three years. Both stocks have fallen more than 30% this year. The author judges IonQ the better option for the next five years, citing lower risk, strong growth and $3 billion in cash.
- US Stock Futures Trade Mixed Premarket As AAPL Margin Concerns Weigh On Tech — PLTR, AMD, AEHR In Focus
U.S. stock index futures traded mixed before the open as investors weighed Apple's (AAPL) earnings ahead of the midterm elections. Apple fell 4.5% after indicating its gross margin would remain under pressure from surging memory chip prices, even though overall revenue and iPhone sales topped expectations. Palantir (PLTR) dropped more than 5% despite adjusted earnings of $0.44 per share beating the $0.41 consensus, while Aehr Test Systems (AEHR) jumped 15.5% after posting record revenue of $33 million, up 200% from a year earlier. Oracle (ORCL) rose 0.4% after announcing plans to raise $20 billion through equity and bond offerings, and Brent crude gained more than 1.3% to $106.13 a barrel after reports of a U.S. strike on Iran's Qeshm Island.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.