Michael Dell lost $2 billion in a single day as shares of his namesake company slid, dropping him behind Mark Zuckerberg on the list of the world's wealthiest people.
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Dell selloff drops Michael Dell to 6th as Zuckerberg claims 5th richest
Michael Dell lost $2 billion in a single day as shares of his namesake company slid, dropping him behind Mark Zuckerberg on the list of the world's wealthiest people.
Dell Technologies shares fell 3.3% on Monday, cutting founder Michael Dell's net worth by $2 billion to $221.1 billion and dropping him to sixth-richest globally.
"The demand we are seeing for AI-optimized servers is exceptionally strong, with over 3,000 customers now buying various forms of our Dell AI factories," Jeff Clarke, vice chairman and chief operating officer at Dell Technologies, said during the company's most recent earnings call.
Dell's stock has declined more than 18% since hitting an intraday all-time high of $469 on June 1, adding to an 8.8% slide the previous week. The selloff follows a 200% year-to-date surge that made Dell the best-performing hardware stock in the S&P 500. Michael Dell, who holds about 265.7 million shares, has seen his fortune rise 864% since 2020, when it stood at $22.9 billion.
The wealth reshuffling shows the concentrated risk of founder fortunes tied to single stocks. Dell's AI server revenue surged 757% over the past year to $16 billion in the most recent quarter, but the stock's pullback reflects profit-taking after a rally that added roughly $140 billion to Michael Dell's net worth since January. Dell is scheduled to report fiscal second-quarter results next month.
The selloff comes as Dell navigates margin pressure from its AI server business. Gross margin compressed to 17.8% from 21.1% a year earlier as the AI product mix crowded out higher-margin traditional server and storage revenue. The company's market capitalization stood at $281 billion as of Monday's close, with shares trading at $396.34.
Mark Zuckerberg's net worth rose to $222.1 billion, according to Forbes, as Meta Platforms shares held steady. Meta is scheduled to report earnings next week. President Donald Trump, who disclosed a Dell stake in the first quarter, has urged investors to buy the stock.
AI Orders Surge as Margins Tighten
Dell's transformation from a legacy PC maker to an AI infrastructure supplier drove its 2026 rally. The company reported record revenue of $43.8 billion for its fiscal first quarter ended May 1, an 88% increase from a year earlier, with AI-optimized server revenue hitting $16.1 billion. Management booked $24.4 billion in AI orders in the quarter and raised full-year revenue guidance to as high as $169 billion.
Yet the stock's forward price-to-earnings multiple of 21.7 times remains below the sector benchmark of 33.8 times, suggesting the market is pricing in execution risk. Dell's balance sheet shows negative shareholders' equity of $1.4 billion, a result of aggressive stock buybacks that have reduced the share count.
This article is for informational purposes only and does not constitute investment advice.
