AI companies are the hottest prospect in the markets right now and Dell AI is powering it all. DELL stock is positioned for massive growth and should catapult Michael to being the first Trillionaire. Let's work hard and make Dell the biggest company in the world. This is your Dell calling. Are you going to answer Michael's call?
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@x1 AI servers specifically are going for a 1-3% margin with rumors of some selling for a loss.
@x1 Servers in general bring in high margins, however AI servers specifically are being sold for a1-8% margin with rumors that some are actually being sold at a loss.
Nonsense - servers are highly profitable for the company.
Servers sell at margins of 25-35%. There are always deals at lower margin and those at higher.
Margins come from the full deal - hardware, rebates, kickbacks (legal marketing funds from vendors) - service, warranty and additional components.
@OP we're doing a fair amount of deployment services as well.
No doubt hardware margins are low, but these sales are key vehicles to attach services which have good to great margins. Our services are clearly better than SuperMicro which makes us competitive.
Bubble is inflating more and more and more....
@j0 Yes there is money in support contracts but we are passing on huge profits for the hardware. For example the actual cost for the storage that I support is below $1k even for the high-end systems. We charge around $15k for a low end system and over $90k for the top models. The support contract gets us a paltry $3k per year.
The money is in the support contracts.
@gj here here
For those who are confused about what we're selling, you better start reading...
Anyway, my ongoing point is that Dell, as stated by our execs, is playing in the AI server market and making mid-single digit profit on these machines. If you do the math at 5%, a billion dollar order is netting us $50m in profit. That's chump change because the lion's share of the sale is going back to Nvidia/AMD for GPUs, Intel/AMD for CPUs, and the rest of the parts, like NICs, DIMMs and SSDs are going back to those vendors. We're selling the rack and the casing holding the parts. No real margin in those parts, hence here were are, chasing cr-p profits while slowly ki-ling off the EMC products that had high margins. Makes zero sense, but then again, I'm sure that the great PC refresh is right around the corner!
@eb “the primary partner” ?!?!???
"Aint nobody buying AI servers or anything from DELL, LOL. Nvidia is the, or at least one of the big leaders in AI so... Smart companies are buying from them, not fkn dell lmfao."
What "AI servers do NVidia make"
What a bonkers take, if you are an employee its even more weird...
https://www.dell.com/en-ie/lp/dt/nvidia-ai
"Aint nobody buying AI servers or anything from DELL, LOL. Nvidia is the, or at least one of the big leaders in AI so... Smart companies are buying from them, not fkn dell lmfao."
The fact that you don't understand what Dell does or that they are the primary partner for Nvidia is hilarious. This is even more ridiculous if you are a Dell employee, how can you not even know what your company does or who its competitors are or how you fit into an industry?
Nice!!!
Dell is one of the frontier AI companies mixing expertise with innovation. It's a win-win for Dell!
It’s all just hype, Wall Street doing what Wall Street does. Dell is another Enron.
@bp But Dell makes the shelf that holds the nvidia cards. If Dell doesn't sell the shelf fir a less than 1% margin, who will? (Sarcasm alert)
Aint nobody buying AI servers or anything from DELL, LOL. Nvidia is the, or at least one of the big leaders in AI so... Smart companies are buying from them, not fkn dell lmfao.
How much money in the maintenance contract?
From my understanding "AI servers" are sold at near-zero profit margins (below 1%).