Tech
tech
Rani Molla
8/29/25

Dell falls after soft Q3 guidance, margin squeeze in AI server business

Dell is down 6% premarket after issuing soft guidance for the third quarter.

The tech hardware company’s second-quarter earnings and revenue figures released after the bell on Thursday, however, did manage to best expectations:

  • Adjusted earnings per share of $2.32, higher than the $2.29 FactSet consensus estimate.

  • Revenue of $29.78 billion, compared with analyst estimates of $29.02 billion.

While the company raised its fiscal 2026 full-year revenue guidance to $107 billion at the midpoint and to $9.55 for non-GAAP diluted EPS — higher than analysts had expected — its third-quarter guidance was disappointing. The company anticipates non-GAAP diluted EPS of $2.45 in Q3, lower than the $2.55 consensus estimate on FactSet.

The company’s Infrastructure Solutions Group, which includes AI servers, had revenue of $16.8 billion last quarter, more than the $15.6 billion analysts predicted. The company says it expects to sell $20 billion worth of AI servers this year, double what it did last year.

Profitability in that business unit was on the weaker side, with margins coming in lower than anticipated. Dell COO Jeff Clarke attributed this to “aggressive” and “competitive” deals that caused some one-off expenses.

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Tesla’s EV market share declined to 38% in August

In August, Tesla’s share of the US EV market fell to 38%, according to new data from Cox Automotive reported by Reuters. Tesla’s market share fell below 50% for the first time last year, as competitors’ EVs began hitting the market. Now, as Tesla’s own sales slip more drastically than they had last year, it’s giving up even more ground. Tesla’s market share fell from 48.7% in June to 42% in July to 38% in August, according to Reuters. That slide has come even as buyers rushing to take advantage of the federal tax credit that ends this month provide a near-term boon for sales at Tesla and other EV makers.

$115B
Rani Molla
11h

OpenAI now expects to burn around $115 billion through 2029 — a full $80 billion higher than the company had previously estimated, The Information reports.

Just how much is that? It’s roughly equivalent to:

Fortunately for OpenAI, which is raising money at a $500 billion valuation, its revenue is also growing faster than expected. The ChatGPT maker now expects to make $13 billion in revenue this year and $200 billion in 2030.

An annotated photo of who attended the tech dinner at the White House.

An interactive who's-who of the tech execs at Trump's White House dinner

The White House invited a gaggle of top founders and tech executives for an intimate dinner at the White House.

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Rani Molla
Apple of my Eye
9/5/25
Apple’s latest phone is betting on looks, while Google looks inward

Apple gets a hardware upgrade. Google gets a software overhaul.

In this photo illustration, the Apple logo "Awe Dropping...

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