April 3 - Dell Technologies (DELL, Financial) shares have fallen to $79.4, marking a nearly 17% decline on Thursday morning. This decline aligns with broader market trends, as technology stocks, including Dell, have been hit hard by new tariffs imposed by President Donald Trump.
The administration's recent decision to implement major tariffs on all imports, with higher duties targeting specific trading partners, has raised concerns among industry leaders. Companies like Dell, which rely heavily on international supply chains, face increased costs that could pressure profit margins.
In response to these tariffs, Dell has indicated it may adjust prices to offset rising input costs. However, the company acknowledges that the dynamic trade environment presents challenges, and the full impact on its financial performance remains uncertain.
Additionally, Dell's collaboration with Apple (AAPL, Financial) and Super Micro Computer (SMCI, Financial) to supply servers for AI infrastructure underscores its commitment to the generative AI sector. However, the new tariffs could affect the economics of these partnerships, adding complexity to Dell's strategic initiatives.
