Is the bubble about to burst?
Dell Technologies and Hewlett Packard Enterprise (HPE) stocks tumbled after Barclays downgraded both companies due to stretched valuations, a projected slowdown in memory-driven revenue, and a lack of a meaningful artificial intelligence (AI) growth inflection in enterprise spending. Analyst Tim Long lowered both IT hardware giants from Overweight to Equal Weight, triggering a broader sector selloff.
@1gh support and just about everything else has been diminished by outsourcing. AI servers are just. Servers. that you plug cpu,gpu,dpu,npu,xpu into. Demand more than supply equals price increases equals revenue increases. Which are the dell records. There is no real IP or patents around AI. Marketing just comes up with new set of words. Dell assembles parts that others make. The supply chain is not really a durable moat IMHO
What does Dell have to offer after AI servers and laptops? Beyond PCs, Dell's core business remains servers, networking, storage, support services, financing, and hybrid cloud infrastructure. The challenge is that many customers see AI infrastructure as Dell's primary growth engine while its once-dominant storage franchise no longer commands the same industry influence it did during the EMC heyday. Dell's Infrastructure Solutions Group is now driven significantly by AI-optimized server demand
The storage organization was once known for exceptional customer service, something many believe has been diminished by Dell's focus on outsourcing and cost containment. A dedicated FSE who understands the customer's environment, business challenges, and infrastructure provides significantly more value than a revolving door of technicians. Strong customer relationships and trust were often the difference between winning and losing the next refresh cycle, and that personal touch appears to have been largely lost.
AI Doesn't Raise Families. People Do.
@q7 Any job that is paperwork? You left out Dir’s, VP’s and SVP’s that just travel around, creating chaos and asking us to build their PPT’s. They aren’t really contributing much. Their Admins and CoS’s, along with their team are doing the actual work. They just get a pretty “look what I did” PPT to present to leadership. They need five meetings before the leadership meeting to be brought up to speed so they can speak to the PPT. Let’s be honest, we’ve got a lot of “leaders” who just look busy, but aren’t really contributing.
AI is great but it is 100% a bubble that WILL burst. Everyone is jumping on that bandwagon, spending millions and bla bla bla... but then will realize that no, AI cannot actually replace humans for the important jobs. And it's EXPENSIVE! But for the time being, bye bye secrataries, HR, contract lawyers, and any job that is primarily paperwork.
they'll drop the bonus percentage.
No fking way they drop bonuses after increasing 401k match. Use ur heads id--ts
bonuses are not required and can be reduced or eliminated at any time. Would it impact morale and maybe save a few jobs - yes. It's the way I expect it to go along w 10k WFRs by end of Dec. Ouch
@d4 I would gave my missing Q2 orders to safe some lifes
Buy the dip
@ct A few years back they froze raises...
Which we hoped they would give back when we started breaking sales and stock market goals.
But...had to bank that money for JS's bonus I suppose.
Bonuses will not stop
Time for some layoffs.
Just a guess. If it continues to fall for more than 6 months, more layoffs.
How will the C suite react to this falling kn--e? Fire even more people, so get ready for that.
It’s the .com’s all over again. AI tumble will crash the economy. Remember what happened then? Investigations. The books were ripped open. If Congress flips in November, I don’t think the investigations will have as much mercy as .com ones did.
It was all bullsh-t like Dell and their leadership. Karma mirror