Data Center
Dell Q1 Earnings: AI Server Shipments up 113% QoQ, Margins Contract
Beth KindigMAY 31, 20245 Min Read
Dell posted strong AI server order revenue of $2.6 billion with shipments of $1.7 billion, representing growth of 113% QoQ from $800 million last quarter. The backlog of $3.8 billion grew 31% QoQ, which is slower growth than we saw last quarter of 81% QoQ. Margins contracted and this was a main focus in the Q&A. The company reported a gross margin of 21.63% down 219 basis points. This is the lowest gross margin in two years, dating back to July of 2022. The operating margin is slim at 4.14% down 254 basis points from last quarter. This is the lowest operating margin dating back to January 2021.
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