Dell Disappoints With Q3 Revenue As PC Market Slowly Gets Back To Its Feet
Portfolio Pulse from Upwallstreet
Dell Technologies reported Q3 results with revenue falling short of estimates at $22.25 billion, a 12% YoY drop, despite beating earnings expectations. The PC market is recovering slower than expected, as reflected by Dell and its rival HP Inc. Dell's shares fell 4% post-announcement. Gartner noted a decline in PC shipments, with Dell ranking third. Canalys anticipates AI-powered PCs to drive market growth from 2025. AMD and Intel are set to unveil new AI products, challenging Nvidia's position in the AI chip market.
December 01, 2023 | 5:59 pm
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POSITIVE IMPACT
Advanced Micro Devices is expected to unveil new AI offerings, potentially impacting the AI chip market currently led by Nvidia.
AMD's upcoming AI product announcements could positively impact its stock in the short term as it positions itself as a competitor to Nvidia in the AI chip market.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEUTRAL IMPACT
Apple, ranking behind Dell in PC shipments according to Gartner, may be indirectly affected by the overall PC market trends.
Apple's stock may experience a neutral impact in the short term as the company's PC market performance is not directly highlighted, but broader market trends could have an indirect effect.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Intel Corporation, along with AMD, gave hope for a PC market recovery ahead of the holidays, but Dell's results and HP's guidance may temper expectations.
While Intel's recent outlook provided some optimism, the negative news from Dell and HP could create uncertainty about the pace of recovery, leading to a neutral short-term impact on Intel's stock.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Lenovo Group Limited, leading the PC shipments ahead of Dell and HP, may continue to experience the effects of a slow PC market recovery.
Lenovo's stock might see a neutral short-term impact as the article does not provide specific details on Lenovo's performance, but it is subject to the same market conditions as Dell and HP.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Dell's Q3 revenue missed estimates with a 12% YoY drop, overshadowing its earnings beat. The slow recovery of the PC market and weak demand in China are concerning. Shares fell 4% after the report.
The revenue miss and the subsequent 4% drop in Dell's share price post-announcement indicate a negative short-term impact on the stock. The slow PC market recovery is a significant factor affecting Dell's performance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
HP Inc guided for a weaker-than-expected first-quarter profit, reflecting a slow PC market recovery and weak demand in China, similar to the trends impacting Dell.
HP's guidance for a weaker-than-expected profit due to similar market conditions as Dell suggests a negative short-term impact on HP's stock as well.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Nvidia, the AI chip leader, faces new competition from AMD and Intel's upcoming AI products, despite a strong quarter and cautious sales guidance.
The introduction of new AI products by AMD and Intel could negatively impact Nvidia's stock in the short term due to increased competition in the AI chip market.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 70