Dell: Nonlinear demand and chip supply constraints hinder our AI server growth

Reported 6 months ago

Shares of Dell Technologies are falling despite exceeding expectations in its first quarter results. Dell's Infrastructure Solutions Group President discusses the margin pressure on the stock, highlighting the momentum in the AI infrastructure business and the company's continued growth trajectory. However, the weak guidance outlook is attributed to nonlinear demand and supplier constraints affecting the ability to forecast growth, particularly in the AI server business. Dell anticipates growth in its server business for several quarters to come, but the market is concerned about margins and the uncertainty in demand forecasting.

Source: YAHOO

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