According to a December 22 news report in Fortune magazine, while theDellCompany executives recently acknowledged that customers have not been able to switch to the new generation as quickly as expected. AI PCInvestors are disappointed, but Dell founder and CEO Michael Dell says he's not.Worry.
"I havemany timesHaving been through this, product updates are usually underestimated, sometimes moving a little faster, sometimes slower." He acknowledges that there is "a real delay" in updating PCs for business customers at the moment. But he also argues that it's not a question of whether or not to buy new computers, but ratherThe question of when enough new features and functionality will be available.
"Our goal," he observes, "is to add enough new features in each update that enough users say, 'Now's the time.'" For executives who are responsible for PC purchases at large companies, he moreover calls theNot adopting AI PCs would be the "wrong choice.", further claiming that his own clients have "no doubt about it."
In the AI space, Dell's performance in infrastructure solutions has to beFar beyond PCDell's AI server sales helped the company achieve revenue growth of $80% last quarter. For example, Dell is working with Elon Musk's xAI to provide servers supporting tens of thousands of NVIDIA AI chips to power its Colossus supercomputer project in Memphis. Whether it's AI data centers or AI PCs, all of these are ultimately dependent on data, compute, and networking, and that's where Dell's "strengths" lie, according to the report.
As 1AI previously reported, Dell expects revenue for the quarter ending next February to be about $24.5 billion, below the average analyst estimate of $25.4 billion. Adjusted earnings per share are expected to be $2.40 to $2.60, also below the average market estimate of $2.66.