--- title: "Dell fell 10.77% on Intel's PC warning; servers are 67.7% of revenue and cash from operations fell 13%" description: "Intel's memory warning knocked 10.77 percent off a company whose own release says it is two-thirds AI servers. The open question is not the $95 billion order book but the cash statement behind it, and Dell reads it out on November 24." publisher: "The Inference" section: "Data Center" published: 2026-11-01T15:14:02.022Z modified: 2026-11-01T15:14:02.022Z canonical: https://theinference.org/article/dell-fell-10-77-on-intel-s-pc-warning-servers-are-67-7-of-revenue-and-cash-from-operations-fell-13 language: en keywords: "Dell Technologies, Earnings, Semiconductors, AI Servers, Stock Moves" --- # Dell fell 10.77% on Intel's PC warning; servers are 67.7% of revenue and cash from operations fell 13% > Intel's memory warning knocked 10.77 percent off a company whose own release says it is two-thirds AI servers. The open question is not the $95 billion order book but the cash statement behind it, and Dell reads it out on November 24. [Dell Technologies](https://theinference.org/markets/companies/dell-technologies) closed Friday October 30, 2026, at $424.30, down 10.77 percent, on no Dell news at all [1]. The trigger was [Intel](https://theinference.org/markets/companies/intel), off 28.58 percent at $65.76, after chief financial officer [David Zinsner](https://theinference.org/markets/people/david-zinsner) said [the PC slowdown continues "at least through the first half of next year"](https://theinference.org/article/intel-down-25-premarket-on-a-weak-pc-guide-its-filing-books-23-billion-of-stock-and-demand-it-cannot-fill) and blamed high memory prices [1]. Hardware names fell in a row on the warning: [HP down 9 percent, Hewlett Packard Enterprise 7 percent, Dell 11 percent intraday](https://247wallst.com/investing/2026/10/30/dell-sinks-11-as-intels-warning-on-pc-slump-and-memory-shortage-hits-hardware-stocks-hp-tumbles-9-hewlett-packard-enterprise-and-super-micro-fall-7/) [4]. The market read Dell as a PC stock. Its own July-quarter release says it is not one, and that makes it the largest name the tape mislabeled on Friday. ## The quarter the tape ignored Infrastructure Solutions Group, the server business, did [$31.782 billion of Dell's $46.971 billion July-quarter revenue](https://theinference.org/article/dell-s-pc-shipments-fell-25-and-ai-server-orders-hit-60-9-billion-the-stock-is-up-356-this-year), 67.7 percent, at a 15.0 percent operating margin [1]. Client Solutions, the PC arm, was 32.0 percent at a 7.6 percent margin [1]. *Chart: **Revenue has nearly doubled in five quarters as the AI-server build runs** Column chart of Dell Technologies quarterly revenue climbing from $23.378 billion in the quarter ended May 2025 to $46.971 billion in the quarter ended July 2026* *Quarterly revenue, $ billions, Dell Technologies fiscal quarters as labelled. Source: Dell Technologies SEC filings, retrieved 1 November 2026 [5] [5]* AI servers alone booked a record $60.9 billion of orders into a $95 billion backlog, and [the fiscal 2027 guide sits at $192 billion of revenue and $25.50 of non-GAAP EPS](https://theinference.org/article/dell-is-up-347-as-its-192-billion-guide-passes-the-memory-bill-to-customers-micron-sees-tightness-to-2028) [1]. On October 21 the stock [rose 6.3 percent on Super Micro's raised outlook](https://www.theglobeandmail.com/investing/markets/stocks/CMG-N/pressreleases/8324198/stocks-making-big-moves-yesterday-dell-chipotle-amkor-super-micro-and-united-airlines/); nine days later it gave back 10.77 percent on a warning that touches a third of the company [3]. Last week this desk covered [HP](https://theinference.org/markets/companies/hp)'s own slide on the same Intel warning; Dell is the new chapter, because its release puts PC exposure at one-third of revenue, not the whole story. ## The cash under the backlog The dispute is not whether AI demand exists. It is whether the cash statement supports the order book. Cash from operations fell 13 percent to $2.225 billion against $4.133 billion of net income; after $1.239 billion of capital spending, operating cash came to $986 million, about 47 percent lower year over year [1]. Inventories doubled to $21.290 billion, payables climbed from $33.630 billion to $49.723 billion, and Dell returned $4.2 billion to shareholders on a $1.427 billion equity deficit [1]. Rising payables alongside rising inventories suggest suppliers are carrying much of the backlog build; the release describes no such model, so that reading is an inference, not a company statement [1]. [Net income has been climbing for five straight quarters while operating cash did not keep pace](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001571996), and in the July quarter earnings overtook cash for the first time in that run [5]. *Chart: **Net income overtook operating cash in Dell's July quarter** Line chart of Dell's quarterly GAAP net income rising from $1.175 billion in the quarter ended November 2024 to $4.133 billion in the quarter ended July 2026, while operating cash flow stays between $0.6 billion and $4.7 billion and ends at $2.225 billion, below net income.* *Net income overtook operating cash in Dell's July quarter [5]* ## What the November 24 print decides About $41.467 billion of second-half AI-server revenue is still inside the $74.0 billion guide, and $53.533 billion of the $95 billion backlog sits above it, with no published conversion schedule [1]. The estimated November 24 report, guided to $49.0 billion of revenue and $6.50 of EPS, tests one thing: whether the 15.0 percent margin holds and converts into operating cash rather than inventory [1]. At 16.64 times its own guide, [against a $595 street average](https://financefeeds.com/dell-stock-prediction-424-30-bull-680-90-bear-304-12/) [1], the stock has priced doubt about the margin and almost none about the working capital. The cash statement on November 24 answers that [1]. ## Takeaway Dell fell 10.77% on Intel's PC and memory warning, but the real question is not demand: it is whether the $95 billion AI-server backlog converts into operating cash instead of inventory, which Dell reports on November 24. ## Sources 1. [FinanceFeeds, Dell stock prediction: $680.90 bull, $304.12 bear, 31 October 2026](https://financefeeds.com/dell-stock-prediction-424-30-bull-680-90-bear-304-12/) 3. [The Globe and Mail / StockStory, Stocks making big moves yesterday: Dell, Chipotle, Amkor, Super Micro, and United Airlines, 22 October 2026](https://www.theglobeandmail.com/investing/markets/stocks/CMG-N/pressreleases/8324198/stocks-making-big-moves-yesterday-dell-chipotle-amkor-super-micro-and-united-airlines/) 4. [24/7 Wall St., Dell Sinks 11% as Intel's Warning on PC Slump and Memory Shortage Hits Hardware Stocks; HP Tumbles 9%, Hewlett Packard Enterprise and Super Micro Fall 7%, 30 October 2026](https://247wallst.com/investing/2026/10/30/dell-sinks-11-as-intels-warning-on-pc-slump-and-memory-shortage-hits-hardware-stocks-hp-tumbles-9-hewlett-packard-enterprise-and-super-micro-fall-7/) 5. [Dell Technologies, quarterly figures from its SEC filings, retrieved 1 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001571996) --- Dell fell 10.77% on Intel's PC warning; servers are 67.7% of revenue and cash from operations fell 13% — The Inference. Canonical: https://theinference.org/article/dell-fell-10-77-on-intel-s-pc-warning-servers-are-67-7-of-revenue-and-cash-from-operations-fell-13