data indicates that Dell Technologies' profit was reduced by US$648m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve
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It's a write-off for them. How is it a write-off? They just write it off.
LOL - Dell has paid $700 million in severance in the last year.... https://www.thestreet.com/technology/dell-employees-claim-new-return-to-office-policy-is-a-quiet-layoff
My guess is large institutions are buying AI clusters. Super micro is leaner and can offer those high volume, low service, commodity AI clusters at higher margin and lower costs. Hence I believe Dell is having to push these few large AI deals out the door at low, no , or negative profit to keep super micro from taking more of the market share. Of course you can't rule out incompetence. This is the only way to makes sense to me that a company with so much AI hardware is making such poor profits during the largest AI bull run in history.
the fact that such items were charged off is not the time for forward looking optimism
Things are going to get real bad before they get remotely better.