Dell's $95B AI server backlog is profitable, defying zero-margin fears
TiernanRayTech · x · 2026-09-02
Dell delivered another big quarterly beat and sharply hiked its profit outlook. Most striking: profit is holding up well as the company amasses a $95 billion backlog of AI server sales — servers some estimated at zero margin are proving to be a perfectly fine business at very high volume. Traditional servers, networking, and storage are also doing well. After hours, Palo Alto Networks and GitLab rose, while AI chip maker Credo and database maker MongoDB fell sharply.
Related event: Dell Posts Record $47B Quarter as AI Server Orders Double to $60.9B(8 posts)→
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