AI and Memory Shortages Disrupt Tech Industry and Raise Device Prices
The surge in AI development has led to a RAM shortage, prompting PC and phone manufacturers to reduce memory specifications to cope with the supply constraints.
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Dell's Q1 profit drops less than expected, but stock rises on strong sales performance.
Dell Technologies Inc beat estimates for Q1 profit due to better cost controls, despite a 20% drop in revenue to $20.92bn. The company's client solutions unit saw a 23% fall in sales, while the infrastructure solutions unit saw an 18% decline. Dell expects Q2 revenue to be between $20.2bn and $21.2bn, below expectations of $21.2bn at midpoint, and warns that IT spending will remain cautious.