Dell Technologies Plunges 6.19% on AI Server Sales Drop

Generated by AI AgentAinvest Pre-Market Radar
Friday, Aug 29, 2025 4:59 am ET1min read
Aime RobotAime Summary

- Dell Technologies' stock fell 6.19% pre-market due to declining AI server sales and profit margin pressures.

- Q2 earnings missed analyst forecasts with $2.45 EPS outlook, raising concerns about third-quarter performance.

- Storage segment revenue dropped 3% while consumer division showed mixed results, compounding investor worries.

On August 29, 2025, Dell Technologies' stock experienced a significant drop of 6.19% in pre-market trading.

Dell Technologies' stock has been under pressure despite achieving a $1.7 trillion revenue milestone driven by strong AI demand. The company reported impressive Q2 earnings, but investors remain concerned about the company's earnings per share (EPS) outlook and profit margins.

Dell Technologies' shares declined in extended trading after reporting fewer sales of artificial intelligence servers and lower profit margins. The company's COO, Jeff Clarke, highlighted the exceptional AI demand but acknowledged the challenges in maintaining profit margins.

Dell Technologies' stock has been weighed down by a softer outlook for the third quarter, with the company anticipating earnings of $2.45 per share, falling short of analysts' forecasts. Despite the strong AI demand, investors are cautious about the company's future performance.

Dell Technologies' Storage segment faced a 3% decline in revenue, adding to the challenges the company is currently facing. The Consumer segment also reported mixed results, contributing to the overall decline in the company's stock price.

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