(Bloomberg) — Michael Dell’s wealth fell the most in a single day after the computer company he founded posted results that disappointed investors.
Most read from Bloomberg
Dell’s net worth fell $11.7 billion to $107.1 billion on Friday, while shares of Dell Technologies Inc. in New York fell by 18% – the highest ever recorded. Although the company reported its first quarterly revenue increase in two years, this wasn’t enough to impress investors with high expectations for its AI server business.
Nearly half of Dell’s fortune comes from the Texas-based computer maker, which he founded 40 years ago while still 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, ranks 13th on the Bloomberg Billionaires Index. In early March, he joined the small group of people with a fortune of more than $100 billion, as rising demand for equipment to support artificial intelligence sent Dell’s shares to a record high. The stock has tripled in the past twelve months.
Read more: Michael Dell Joins the $100 Billion Club as AI-Powered Stocks Soar
Other tech billionaires have also seen their wealth soar amid the blistering rally in AI-related stocks. Nvidia Corp. co-founder Jensen Huang’s net worth briefly surpassed $100 billion earlier this week after another blowout quarter for the chipmaker. He currently ranks 16th on Bloomberg’s wealth list with $96.3 billion.
Large companies increasingly need powerful servers to train and run demanding generative AI tasks, which are sold by Dell and a few other companies.
–With help from Jack Witzig.
(This updates the numbers.)
Most read from Bloomberg Businessweek
©2024 BloombergLP
