Options Market Statistics: Dell Stock Plummets as Earnings Lag AI Sales Growth, Options Pop

Nvidia stock is trading in a volatile session on Friday as it continues to lead the artificial intelligence race with its advanced chips. CEO Jensen Huang prepares to deliver his opening speech on Sunday at Taiwan's Computex event.

Meanwhile, the U.S. has issued a temporary embargo on exporting AI chips to the Middle East, citing national security concerns. The U.S. government is undergoing a review of high-volume sales to the United Arab Emirates and Saudi Arabia. A year ago, the U.S. issued similar restrictions on China. The embargoes are taking a toll on chip companies, including Nvidia and AMD, which have sizable exposure to countries.

Shares of Dell Technologies closed down nearly 18% Friday after investors were discouraged by the company's lower-than-expected artificial intelligence server backlog and an estimated decline in margins.

Dell reported fiscal first-quarter results on Thursday that beat analysts' expectations and offered rosy guidance. The company said revenue for the period was $22.24 billion, which was up from the $21.64 billion estimated by analysts according to LSEG.

For its second quarter, Dell said it expects earnings of $1.65 per share, and it expects sales to come in between $23.5 billion and $24.5 billion. Analysts polled by FactSet were expecting $23.35 billion. Dell guided for between $93.5 billion and $97.5 billion in sales for the full fiscal year. The beat wasn't enough to appease investors, and shares tumbled in extended trading Thursday.