Michael Dell’s Wealth Falls Most Ever as Server Sales Disappoint

Michael Dell’s Wealth Falls Most Ever as Server Sales Disappoint

(Bloomberg) — Michael Dell’s wealth fell the most in a single day after the computer company he founded reported earnings that disappointed investors.

Most read on Bloomberg

Dell’s net worth fell $14.8 billion to $104.1 billion on Friday as shares of Dell Technologies Inc. fell as much as 23% in New York – the biggest on record. Although the company reported its first quarterly revenue increase in two years, that wasn’t enough to impress investors who had high expectations for its AI server business.

Nearly half of Dell’s fortune comes from the Texas-based computer maker, which he started 40 years ago while he was a student at the University of Texas. Another major source of his net worth comes from his stake in Broadcom Inc., whose shares also fell on Friday.

Dell, 59, the company’s chairman and CEO, ranked 11th on the Bloomberg Billionaires Index on Thursday. In early March, he joined the small group of people whose fortunes exceeded $100 billion, as growing demand for equipment to aid artificial intelligence sent Dell shares to a record high. The stock has tripled in the last 12 months.

Read more: Michael Dell joins the $100 billion club as AI stocks surge

Other tech billionaires have also seen their wealth skyrocket amid the meteoric rise in AI-related stocks. Nvidia Corp. co-founder Jensen Huang’s net worth briefly topped $100 billion earlier this week after another explosive quarter for the chipmaker. He currently ranks 16th on Bloomberg’s wealth list with $97 billion.

Large companies increasingly need high-powered servers to train and run demanding generative AI tasks, sold by Dell and a few other companies.

–With help from Jack Witzig.

Most read from Bloomberg Businessweek

©2024 Bloomberg LP

Source Reference

Latest stories