Dell shares slump as heavy AI investments expected to dent margin

Explore stories from Atlantic Canada.

Stan Rogers Folk Festival 2024: 27 years of music and community | SaltWire #festival #music #ns - Dell Technologies shares tumbled about 14% in premarket trading on Friday, as the PC and server maker expects sizeable AI investments to dent its quarterly profit.

"AI-server sales continue to contribute only a small percentage to the firm's top line and are margin-dilutive," Morningstar analysts wrote in a note. "The market is reining in unrealistic expectations for Dell's ability to benefit from AI spending," Morningstar analysts said. Dell has turned to pricing its models competitively in the consumer PC segment as the PC market emerges from a years-long slump.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

SaltWire Network /  🏆 45. in CA

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

EU regulator recommends use of Valneva's chikungunya vaccineExplore stories from Atlantic Canada.
Read more »

Kremlin says it backs China's refusal to take part in Ukraine peace summitExplore stories from Atlantic Canada.
Read more »

Sudan at 'imminent risk of famine', UN aid chiefs warnExplore stories from Atlantic Canada.
Read more »

Kremlin says Ukraine has already tried striking Russian territory with U.S. armsExplore stories from Atlantic Canada.
Read more »

Kremlin says Trump verdict shows his rivals are using all means to get rid of himExplore stories from Atlantic Canada.
Read more »

Factbox-D-Day: What to expect from 80th anniversary in NormandyExplore stories from Atlantic Canada.
Read more »