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Dell Stock Drops as Soft Q3 Profit Projection Offsets Strong AI Demand

1. Dell projected soft Q3 profit, causing a 7% share drop. 2. Adjusted EPS forecast of $2.45 falls short of $2.49 expectation. 3. AI server shipment guidance raised to $20 billion for FY26. 4. Dell's Q2 revenue grew 19% year-over-year to $29.78 billion. 5. PC segment sales missed estimates, indicating potential market share loss.

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FAQ

Why Bearish?

Despite strong growth in AI, the lowered profit guidance and missed PC sales indicate emerging challenges, reminiscent of past fluctuations in tech stocks facing demand shifts.

How important is it?

The article highlights both challenges and opportunities for Dell, thus significantly influencing market perception.

Why Short Term?

The immediate reaction in shares indicates investor concern; however, ongoing demand for AI may stabilize long-term prospects.

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