Michael Dell also warned that memory chip shortages will intensify next year, with DRAM supply continuing to restrict deliveries. While some market participants express concern over a memory oversupply by 2027 that has weighed on Micron and SK Hynix, Dell noted that new fabrication plants are unlikely to provide meaningful relief until 2029 or 2030.
Wednesday, October 21, 2026
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Dell Shields Business from AI Bust With Just in Time Model
AI5 days ago
Dell Technologies is fulfilling a $95 billion backlog of AI servers through a customer-funded delivery system that limits the company's inventory exposure. CEO Michael Dell stated that utilizing just-in-time manufacturing and a negative cash conversion cycle creates a financial cushion to survive a potential downturn in AI spending, unlike the model used by more heavily indebted infrastructure providers. This approach currently serves over 6,500 AI customers and supports a projected 70% increase in fiscal-year revenue.
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