News about Dell Technologies

Dell Technologies shares fell 22.9% last week to close at $451.71 on Friday, Oct. 15, after Barclays downgraded the stock to hold from buy. Barclays argued that recent server revenue growth reflects memory cost inflation passed on to customers rather than a surge in enterprise AI adoption, and noted that hardware is only about a quarter of corporate AI budgets. In its last quarter ended July 31, Dell reported record revenue of $47 billion, up 57.7%, including $16.4 billion in AI server revenue. The article says Dell trades at a trailing P/E of 26.2 and that its AI-optimized servers are estimated to account for less than 40% of annual revenue this fiscal year. The next quarterly earnings report is scheduled for Nov. 24.