Thank you for sharing:The post-earnings drop may present a buying opportunity for $Dell Technologies Inc.(DELL)$ , given its strong AI-driven growth trajectory.
Earnings Digest | Dell's Plunge: Opportunity or Risk?
@Value_investing：$Dell Technologies Inc.(DELL)$ Why DELL Could Be a Long-Term AI Play Why DELL is tumbling while its AI service performs strong? Post-Earnings Selloff Dell Technologies' stock dropped 11.3% in after-hours trading following the release of its FY2025 Q3 earnings (as of November 1). Revenue slightly missed expectations, and weak Q4 guidance, driven by a decline in AI server shipments, triggered the sharp selloff. Key Q3 Metrics Total Revenue: $24.37 billion, up 9.5% YoY, slightly below the $24.59 billion analyst consensus and below the midpoint of Dell's own guidance. Segment Performance Servers & Networking: $7.36 billion, +58% YoY. AI server revenue reached $3.6 billion, surging 620% YoY, far exceeding expectations. Storage: $4 billion, +4.2% YoY. Client Solutions Group (CSG): $12.13 billion, -1.2% YoY, missing the $12.41 billion estimate. AI's Impact on Business AI server revenue fueled a significant outperformance in the servers and networking segment. The storage business benefited from higher AI-driven storage capacity demand compared to traditional servers. Weak PC Performance The CSG segment faced challenges due to: Overestimated expectations for AI boosting PC sales. Microsoft’s new Windows release failing to drive corporate PC upgrades. Dell CFO Yvonne McGill, however, remains optimistic, predicting the PC upgrade cycle will extend into next year, with AI potentially lifting sales. Q4 Outlook and Full-Year Guidance Q4 Revenue: $24–25 billion (midpoint +10% YoY), below the $25 billion analyst consensus. ISG (Servers & Networking): Expected +25% YoY. CSG (Client Solutions): Slight YoY growth forecasted. AI server revenue may decline QoQ due to delayed Blackwell shipments, raising market concerns. Full-Year Revenue: Guidance midpoint revised down from $97 billion to $96.1 billion. Long-Term Potential Despite the shortfall, Dell’s long-term growth remains driven by: The transition from traditional to AI servers. Expansion in storage and AI-related PC businesses. Conclusion The post-earnings drop may present a buying opportunity for Dell, given its strong AI-driven growth trajectory.
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