Dell Forecasts Ai Server Costs Hit Gross Margin Rate
Dell's adjusted gross margin rate is expected to decline about 100 basis points in fiscal year 2026 due to higher costs of building artificial intelligence servers. The company forecasts $15 billion in annual revenue from AI server shipments, but costly production is weighing on margins. Dell's PC business also lags amid soft demand.
- This shift towards AI-driven servers highlights the evolving competitive landscape in the tech industry, where companies are increasingly investing in high-margin products to drive growth.
- As AI continues to transform industries, what role will regulatory bodies play in ensuring that these technologies are developed and deployed responsibly, and without exacerbating existing social and economic inequalities?