Dell Falls After Reporting Tighter Profit Margins on Servers

Dell Falls After Reporting Tighter Profit Margins on Servers

Dell Technologies headquarters in Round Rock, Texas.

Dell Technologies Inc.shares declined in early trading after the company booked fewer sales of artificial intelligence servers than in the previous three months and reported profit margins on the powerful machines that fell short of analysts’ estimates.

The need for computing to run AI tools has led to a sales boom for makers of high-powered servers like Dell, Super Micro Computer Inc. andHewlett Packard Enterprise Co.Investors have been concerned about the profitability of AI servers, however, which depend on expensive processors from companies such asNvidia Corp.andAdvanced Micro Devices Inc.

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