Bloomberg Intelligence Caterpillar Warns Tariff Impact Bigger Than Previously Seen
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Aug 29, 2025 Dell faces rising challenges with declining AI server sales and underwhelming profit margins, stirring investor concern. Caterpillar warns of a hefty $1.8 billion tariff impact this year, signaling more significant risks than anticipated. Meanwhile, the love for AI thrives as NVIDIA's strong revenue continues to captivate investors. On the home front, despite high mortgage rates and limited supply, homebuilder stocks may see potential growth due to stabilizing rates and improved consumer confidence.
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Dell Competes On Scale, Not Always On Margin
- Supermicro leads in AI server design while Dell leverages financial strength to win share via discounts.
- Dell lags HP in PC growth but remains competitive long-term across servers and PCs.
Tariffs Raise Caterpillar's 2025 Costs
- Caterpillar now expects tariffs to cost up to $1.8B in 2025, higher than prior estimates.
- The increase stems from expanded Section 232 coverage and reciprocal India duties, pressuring input costs.
Backlog And Orders Support Caterpillar's Recovery
- Caterpillar's earnings should bottom in 2025 with cyclical and secular tailwinds into 2026–27.
- Record backlog, strong orders, and dealer inventories point to revenue recovery ahead.