Dell Shares Drop Over 20% Amid AI Server Profit Concerns
Investors react to lower-than-expected AI server margins and backlog, despite strong overall earnings
- Dell's AI servers are sold at near-zero margins, impacting profitability.
- First-quarter AI server backlog grew 30% but fell short of analyst expectations.
- Dell's stock has risen 79% this year but dropped significantly after earnings report.
- Analysts remain optimistic about long-term AI profitability for Dell.
- Company forecasts lower margins due to high AI investment costs.
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