Michael Dell was initally one of the biggest winners this year, with his net worth soaring by more than $70 billion since January as Dell stock surged. But recently, his wealth has declined by about $34 billion, dropping from $244 billion to $210 billion.
Dell Stock is Facing Headwinds
Dell’s surge is because of the ongoing artificial intelligence supercycle that has pushed server prices to a record high. The most recent earnings report showed that its revenue jumped by a whopping 88% in Q1 to $43.8 billion.
Its diluted EPS soared by 282% to $5.24, while management guided to Q2 revenue rising by 49% YoY to $44.5 billion. It also expects that its full-year revenue will jump by 47% to $165 billion. Based on its history of beating analysts’ estimates, chances are that its real figures will be better than estimates.
Still, despite all this, the company is exposed to headwinds if the artificial intelligence boom starts to fade. While its too early to predict, there are signs that spending will start slowing in the coming years.
