Dell Shares Drop 10% As AI-Powered Revenue Growth Fails To Offset Weak Q4 Forecast

Benzinga

Dell Technologies forecasted lower-than-expected fourth-quarter revenue and earnings, sending shares down 10% in after-hours trading. The company projected revenue below Wall Street estimates despite upbeat comments on AI sales growth. Dell's adjusted earnings per share exceeded expectations, while its revenue fell short of projections. The company reported higher net income and revenue compared to the same period last year. Dell leads in providing computer clusters for artificial intelligence development, particularly systems using Nvidia chips. It faces competition from Super Micro Computer, Hewlett Packard Enterprise, and Asian manufacturers.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Dell Technologies forecasted lower than expected fourth quarter revenue and earnings,

00:06setting shares down 10% in after-hours trading.

00:09The company projected revenue below Wall Street estimates,

00:12despite upbeat comments on AI sales growth.

00:14Dell's adjusted earnings per share exceeded expectations,

00:18while its revenue fell short of projections.

00:20The company reported higher net income and revenue compared to the same period last year.

00:25Dell leads in providing computer clusters for artificial intelligence development,

00:28particularly systems using NVIDIA chips.

00:31It faces competition from Super Microcomputer,

00:34Hewlett Packard Enterprise, and Asian manufacturers.

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