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August 29, 2025Cryptopolitan logoCryptopolitan

US, Chinese tech giants post underwhelming numbers as AI push backfires

Shares of Dell Technologies fell almost 6% premarket on Friday after the company projected underwhelming third-quarter profits and reported a second-quarter margin rate that missed Wall Street targets, dimming the effect of a higher full-year forecast Demand for servers built to run heavy artificial-intelligence workloads has been climbing, a trend that has helped Dell, Hewlett Packard Enterprise and Super Micro ￰0￱ building and delivering those systems is costly, and competition for big contracts is intense, squeezing ￰1￱ analysts said Dell put clearing AI server backlogs ahead of protecting ￰2￱ pointed to supply chain problems and expedited shipping adding to pressure already created by aggressive pricing to win large ￰3￱ margin rate falls short and profit estimate disappoints For the second quarter, the company’s adjusted gross margin rate slipped to 18.7% from a year earlier, below the 19.6% analysts had ￰4￱ the current quarter, Dell guided to adjusted earnings of $2.45 a share, under the $2.55 consensus based on LSEG data.

Third-quarter sales are guided to $26.5-$27.5 billion, surpassing the $26.05 billion consensus ￰5￱ so, Dell lifted its outlook for the year, now forecasting sales of $105 billion to $109 billion, up from a prior range of $101 billion to $105 billion, helped by demand for AI-optimized servers. Full-year adjusted EPS guidance was increased to $9.55 from $9.40. In early trading, the stock was last down 5.8% at $126.30, though it remained up more than 16% for the year through the previous ￰6￱ valuation, Dell changes hands at 13.2 times projected earnings, above HPE’s 10.8 but below Super Micro’s roughly 16.3 and far under the S&P 500’s 22.3, according to Reuters’ ￰7￱ Group sees steep profit drop In separate news, Ant Group reported a sharp downturn in ￰8￱ Chinese fintech’s net income fell 60.5% to 4.74 billion yuan ($662.7 million) for the three months ended March 31, based on calculations using figures Alibaba released on ￰9￱ said the drop mainly reflected “investments in new growth initiatives and technologies, and the decrease in fair value of certain investments.” The e-commerce company records its share of Ant’s results on a one-quarter ￰10￱ and Alibaba were co-founded by Jack Ma, and Alibaba owns 33% of the fintech ￰11￱ Marvell Technology also faced investor pushback Marvell Technology shares tumbled 15% before the opening bell Friday after the company’s data-center outlook came in below lofty expectations, a shortfall tied to uneven sales of its custom AI chips to major cloud ￰12￱ hopes for the sector have run high as valuations have surged on the AI build-out, but Nvidia’s latest results introduced fresh questions about how quickly cloud providers will keep ￰13￱ a call with analysts Thursday, CEO Matt Murphy said Marvell expects third-quarter data-center revenue to be flat from the prior quarter, unsettling investors looking for faster growth in the company’s most important business.

Marvell’s sales are increasingly tied to custom chip work for hyperscale operators such as ￰14￱ and Microsoft, which are building more of their own capabilities to lessen reliance on ￰15￱ outlet reported that Microsoft pushed back the timetable for its own AI processor, targeting 2028 or ￰16￱ added that “lumpiness” is typical when large cloud companies construct new infrastructure, highlighting how shifting product roadmaps and spending cycles can affect ￰17￱ Kinngai Chan at Summit Insights, who rates the stock “hold,” said Marvell lacks the scale of larger rivals and expects hyperscalers to keep a multi-vendor approach, a mix that could pressure ￰18￱ company competes with Broadcom for custom silicon and networking wins; Broadcom has not yet posted results for the July ￰19￱ the premarket slide persists, Marvell stands to shed close to $10 billion in market ￰20￱ to LSEG, Marvell trades at 23.95x forward 12-month earnings versus Broadcom at ￰21￱ ahead, Murphy said the custom business should be stronger in the fourth quarter, signaling a potential pickup later in the year as orders ￰22￱ Difference Wire : the secret tool crypto projects use to get guaranteed media coverage

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