Dell stock drops by 19.6% despite AI progress

Dell Technologies' stock experienced a 19.6% decline following the release of its first-quarter earnings report. Revenue saw a 6% increase, reaching $22.2 billion. AI server sales doubled during the initial quarter. The PC-focused Client Solutions Group posted stagnant revenue growth. Adjusted earnings per share dropped by 3% to $1.27. Both quarterly and full-year guidance fell short of expectations, with projections set at $1.55 to $1.75 and $7.40 to $7.90, respectively. Investors are encouraged to explore alternative AI server companies such as Super Micro Computer for more promising growth prospects. Dell did not secure a spot in the Motley Fool Stock Advisor team's top 10 stock picks at present. Dell is concentrating on competitive pricing strategies within the consumer PC sector to drive growth. Chief Operating Officer Jeffrey Clarke attributed the decline in quarterly profits to significant AI investments, resulting in a market value loss exceeding $21 billion.

Summary News: Dell Stock Decline Today

Dell Technologies' stock fell 19.6% following its Q1 earnings report, with revenue increasing by 6% to $22.2 billion. AI server sales doubled, but the PC-focused Client Solutions Group saw stagnant revenue growth. Adjusted earnings per share dropped by 3% to $1.27. Dell's quarterly and full-year guidance fell short of expectations, with projections set at $1.55 to $1.75 and $7.40 to $7.90, respectively. Dell is focusing on competitive pricing strategies to drive growth.

Source: Why Dell Stock Plunged Today