Dell Reports Tuesday, and Its Server Margin Is Where the AI Memory Bill Finally Reaches the Stock
Chip designers have spent weeks describing what soaring memory prices are doing to their margins. On Tuesday, the company that built $16.1 billion of AI servers last quarter shows its own.
Overview
Dell Technologies (NYSE:DELL) reports its fiscal 2027 second-quarter results on Tuesday, Sept. 1, with a conference call set for 3:30 p.m. Central time. One line in that report interests me more than the revenue number, the earnings number, or the size of the artificial intelligence (AI) order backlog. It's the operating margin of Dell's infrastructure solutions group, the segment that builds the servers powering the AI build-out.
That's because memory prices have been climbing across the chip industry, and the companies that design AI chips have spent recent weeks describing what those costs are doing to their own margins.
Details
Dell sits further down the same supply chain. It buys memory in huge volumes and assembles it into finished servers. If rising component costs are going to squeeze anyone's margins, the assembler is where the squeeze should show up first.
Source
Originally published at www.fool.com.