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Thirty-nine weeks: that's how long you'll be waiting for an AI server from Dell

Dec 01, 2023 - theregister.com
Dell's Q3 2024 earnings call revealed a surge in demand for AI servers, with a backlog nearly doubling since Q2. However, supply chain constraints mean customers face a 39-week wait for the hardware. Dell's vice chair and COO, Jeff Clarke, blamed the delay on Nvidia and expressed hope for more competition in the future. Despite tripling its pipeline for AI servers in the quarter, Dell is still struggling to meet demand.

Dell's Q3 revenue was $22.3 billion, down 10% YoY, while net income rose 317% to $1.04 billion. The Infrastructure Solutions Group accounted for $8.5 billion of revenue, flat sequentially and down 12% YoY. The Client Solutions Group won revenue of $12.3 billion, with $9.8 billion from commercial customers. Clarke predicted a return to growth in FY 2025 and hinted at the possibility of Dell dabbling in Arm-powered PCs.

Key takeaways:

  • Dell has reported a surge in demand for AI servers, but supply chain constraints mean customers will have to wait 39 weeks for delivery.
  • The company shipped half a billion dollars worth of AI servers in Q3 2024, with demand nearly doubling sequentially.
  • Dell's Q3 revenue was $22.3 billion, down 10% year-over-year, while net income of $1.04 billion was up 317%.
  • Despite an expected increase in PC demand during Q3, this did not materialize due to corporate buyers being cautious with their spending.
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