Dell Technologies announced a record $60.9 billion in AI server orders, but its stock price still fell by approximately 7%, closing at $425. Investors questioned whether the rapid expansion of the AI server business could sustain profit margins, as this business historically has lower margins than Dell's storage and traditional server products. Dell's AI server orders reached $60.9 billion this quarter, with AI backlog orders at $95 billion. The full-year AI server outlook was raised to $74 billion, a 200% year-over-year increase. Non-GAAP earnings per share (EPS) were $7.04, significantly exceeding the expected $4.8994. However, free cash flow decreased by 47% year-over-year to $986 million, reflecting the working capital costs required to expand AI hardware.