Nov 26 (Reuters) - Dell Technologies ( DELL ) missed

Wall Street expectations for third-quarter revenue on Tuesday,

weighed down by weaker demand for its traditional PCs and stiff

competition from rival server makers.

The company reported revenue of $24.37 billion in the

quarter, compared with the average analyst estimate of $24.67

billion, according to data compiled by LSEG.

Despite booming demand for Dell's AI-optimized servers used

to handle large AI workloads, its traditional PC segment has

been facing stiff competition from rivals such as HP and weaker

consumer spending amid an uncertain economy.

Revenue from Dell's client solutions group, which houses its

PC business, came in at $12.13 billion, below expectations of

$12.43 billion.

"Interest in our portfolio is at an all-time high, driving

record AI server orders demand of $3.6 billion in Q3 and a

pipeline that grew more than 50%," Dell's Chief Operating

Officer Jeff Clarke said on Tuesday.

As Dell's server revenue grows, investors are keenly eyeing

the company's costs after it flagged in May that higher expenses

to build AI-heavy servers and competitive pricing would hurt its

margins.

The company is also betting on new AI PCs to boost its

traditional computer business.

Revenue from Dell's infrastructure solutions group, which

includes its AI servers, rose 34% to $11.37 billion, compared

with estimates of $11.35 billion.

The company's servers and networking revenue for the third

quarter jumped 58% to $7.36 billion, but missed estimates of

$7.64 billion.