MICHAEL DELL REVEALS HOW HIS COMPANY COULD SURVIVE AN AI BUST

Dell Technologies ($DELL ) is positioning itself to withstand a potential AI downturn through just-in-time manufacturing and a negative cash conversion cycle.

Unlike heavily indebted AI infrastructure providers, Dell largely builds servers against customer orders, limiting inventory exposure.

• AI server backlog: $95 billion
• AI customers: 6,500+
• Projected fiscal-year revenue growth: 70%

However, Michael Dell warns that memory chip shortages could worsen next year.

The key takeaway: Dell's customer-funded operating model may offer protection against an AI spending slowdown, although weaker demand could quickly hit revenue.
(@WalterBloomberg)