Posted 11/30/2023, 9:05:01 PM
Dell Q3 Earnings Miss Estimates on Slow PC Demand and Supply Chain Woes; Long-Term AI Growth Expected
- Dell reported Q3 revenue below estimates at $22.25B, missing expectations of $23B, due to slow PC market recovery
- Dell's client solutions revenue down 11% YoY to $12.28B due to weak enterprise spending
- Server revenue up 9% sequentially fueled by interest in AI, but constrained by limited supply of AI chips
- Results mirror wider PC industry trends, with HP also forecasting lower Q1 profits on slow China and consumer demand
- PC makers expect demand recovery ahead of holidays and long-term AI adoption, with AI PCs projected to be 60% of market by 2027