What Changed For Dell Stock, And What Did Not?

Michael Dell's net worth fell by $16 billion as Dell Technologies stock dropped 9% in early trading on Thursday, moving him to the sixth-richest position on Forbes' list. Dell stock was trading at $462.88, with Dell's net worth estimated at $241.2 billion, below Meta's Mark Zuckerberg at $250.7 billion. The decline follows a broader tech selloff driven by inflation data and AI spending concerns.

Tech stocks fell on Thursday, with Nvidia, Intel, SpaceX, Micron, Dell, and Broadcom among the decliners. Hotter-than-expected inflation data raised Fed rate-hike fears, impacting AI spending. Anthropic reported 45% revenue growth, but slower than prior quarters. TSMC's net profit grew 68.7%, yet its stock also fell.

Dell Technologies (DELL) stock fell nearly 10% after Barclays downgraded it to Equal Weight, citing stretched valuations and lack of enterprise AI spending. The firm cut its price target to $574. Insider sales and broader market tech selloff added pressure. Dell's AI server backlog is $95 billion, with fiscal 2027 revenue guidance at $192 billion. NASDAQ dropped 1.2%, and peers like Hewlett Packard Enterprise also declined.

Dell (DELL), Hewlett Packard Enterprise (HPE), and Super Micro Computer (SMCI) shares fell 7-8% after Barclays downgraded Dell and HPE to hold, citing uncertainty around enterprise AI spending. Dell's Q2 revenue growth was partly driven by memory shortages and higher component prices, with a record $60.9B in AI server orders. HPE and SMCI also faced pressure due to their ties to server demand. Tech ETFs like IYW and QQQ declined less, at 1%.

Barclays downgraded Dell Technologies (DELL), HPE, and NetApp to 'hold' due to recent stock rallies and uncertain AI spending. Dell's stock fell 11% on the news. Despite Dell's strong Q3 results, including 58% revenue growth and raised full-year guidance, Barclays questions the sustainability of growth driven by memory price increases. Other tech stocks like Oracle and Super Micro also declined.

Dell shares dropped 11% after Barclays downgraded Dell, HPE, and NetApp, citing concerns that enterprise AI spending is not yet boosting hardware demand. Barclays noted that recent revenue growth may be due to higher memory costs rather than AI adoption. Other data center equipment companies, including Oracle and Super Micro, also saw declines.