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# Dell: Shrinking Backlog And Margin Pressures (Archive)
- URL: https://www.huntingalphas.com/dell-shrinking-backlog-and-margin-pressures-archive/
- Published: 2024-09-29T16:19:00.000Z
- Updated: 2026-02-28T03:01:14.000Z
- Description: Shrinking backlog, rising competition, and lower-margin AI servers threaten Dell’s profitability.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, DELL, Tech

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Backlog indicators as seen in the remaining performance obligations are shrinking and high-growth products such as AI-servers are expected to see QoQ revenue declines next quarter, with a flat backlog.
- Competitive intensity is increasing, and industry data shows that Dell is losing share in global PC shipments and mainstream servers.
- A revenue mix shift toward lower-margin AI-servers and pricing pressures are headwinds to gross margins going ahead.
- Dell is trading at a slight premium to sectoral peers, which I think reduces the margin of safety for buys given a tough competitive environment.
- Relative technicals show a monthly bullish trend, which is a silver lining. However, there are weekly obstacles ahead that, I think, will inhibit upside vs the S&P 500.

Read the full article [here](https://seekingalpha.com/article/4724069-dell-shrinking-backlog-and-margin-pressures?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*