Dell Technologies exceeded analysts' expectations for fiscal first-quarter revenue and earnings and raised its full-year revenue guidance. Dell's AI-optimized server orders increased significantly but the company's gross margins declined due to competitive pricing and a higher mix of AI servers. Dell's AI server backlog is primarily made up of orders for Nvidia-based servers as the company works through supply chain issues. The backlog also includes large cloud customers. Extended trading saw Dell's stock price drop over 18% following the earnings call.
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NewsTranscript
00:00 It's been Zynga, here's what's on the block.
00:03 Dell Technologies exceeded analysts' expectations for fiscal first quarter revenue and earnings
00:08 and raised its full year revenue guidance.
00:10 Dell's AI-optimized server orders increased significantly, but the company's gross margins
00:15 declined due to competitive pricing and a higher mix of AI servers.
00:19 Dell's AI server backlog is primarily made up of orders for NVIDIA-based servers, as
00:24 the company works through supply chain issues.
00:27 The backlog also includes large cloud customers.
00:30 Extended trading saw Dell's stock price drop over 18% following the earnings call.
00:34 For all things money, visit Benzinga.com.