7 Billion as Dell Technologies' Results Disappoint Investors

In a single day, Michael Dell, the founder of Dell Technologies Inc., experienced the largest drop in his wealth as the computer company's disappointing earnings disappointed investors. With the stock falling 18% in New York - the biggest decline on record - Dell's net worth tumbled by $11.7 billion to $107.1 billion on Friday.

Although Dell Technologies reported its first quarterly revenue increase in two years, it failed to meet the high expectations of investors regarding its AI server business. The Texas-based computer maker, started by Dell 40 years ago while he was a student at the University of Texas, accounts for nearly half of his fortune.

Another significant source of Dell's net worth comes from his stake in Broadcom Inc., whose shares also slid on Friday. The 59-year-old chairman and CEO of Dell Technologies currently stands at the 13th position on the Bloomberg Billionaires Index.

Earlier this year, Dell's wealth surpassed $100 billion, as the demand for AI computing equipment sent Dell Technologies' shares to a record high. Over the past 12 months, the stock has tripled, contributing to Dell's substantial net worth.

Other tech billionaires have also witnessed a surge in their wealth due to the rally in AI-related stocks. Jensen Huang, the co-founder of Nvidia Corp., briefly surpassed $100 billion earlier this week after the chipmaker reported impressive quarterly results. Huang is currently ranked 16th on Bloomberg's wealth list with a net worth of $96.3 billion.

The increasing need for high-powered servers to handle demanding generative AI tasks has fueled the sales of Dell and a few other companies in the market. As the AI industry continues to flourish, tech billionaires like Michael Dell and Jensen Huang are poised to ride the wave of success, despite occasional setbacks.