Reuters Dell Technologies on Thursday reported thirdquarter revenue below estimates due to a slowerthanexpected recovery in the hardware and software market, sending its shares down 4 after the bell.

Vendors in the market have seen a slowdown in demand following the surge in sales of electronic devices during COVID lockdowns on the back of increased workfromhome measures.

The company39;s client solutions group, which includes its consumer and enterprise personal computer business, posted revenue of 12.28 billion for the third quarter, a near 11 fall compared to a year earlier.

Dell was not the only PC vendor to face the challenge. However, Dell has more impact than its competitors due to the weakness in the business PC market, which is a core market for the company, said Mikako Kitagawa, analyst at Gartner.

Dell39;s servers and networking business revenue was up 9 from the second quarter, fueled by customer interest in generative artificial intelligence, Chief Operating Officer Jeff Clarke said.

However, server makers have been struggling with supply constraints for AI chips made by Nvidia, used to run large language models that power apps like ChatGPT.

Revenue for the third quarter came in at 22.25 billion for Dell, missing estimates of 23 billion, according to LSEG data.

Dell raised its expectations for fullyear earnings per share to 6.63, plus or minus 10 cents, compared with its prior forecast of 6.30, plus or minus 20 cents.

Positive results posted by major…