Dell just booked a record AI server backlog and its stock has already outpaced nearly every name on Wall Street this year, yet analysts say the real move may not have started yet.
While many tech firms are piling on debt for long-term AI projects, Michael Dell says just-in-time manufacturing cushions his eponymous company.
Dell (NYSE: DELL) stock has fallen 18.2% this week, last closing at $473.39 on October 15 after losing no less than 11% in the previous session. Is the stock a buy, hold, or sell?
Dell Technologies (DELL) reached $473.39 at the closing of the latest trading day, reflecting a -6.8% change compared to its last close.
Dell Technologies stock has pulled back sharply over the past few days, with its market capitalization falling from $375 billion earlier this month to about $300 billion today. The decline has coincided with a broader retreat among other leading AI infrastructure companies.
Dell Technologies (NYSE:DELL | DELL Price Prediction) is leading a fresh retreat in artificial intelligence (AI) hardware, as doubts about the timing of enterprise spending hit server makers hardest. In morning trading, Dell stock is at $465.31, down 8%.
An analyst sees limited room for Dell and HPE shares to continue climbing, as dynamics could shift within the market for memory components.
Barclays downgraded Dell, HPE, and NetApp on concerns that enterprise AI adoption is lagging. Dell tumbled 11%, leading the drop on Wall Street.
Some of this year's hottest stocks are taking a hit Wednesday after downgrades from Barclays.
Shares of Dell Technologies (DELL), Hewlett Packard Enterprise (HPE) and NetApp (NTAP) fell in trading on Wednesday after Barclays downgraded all three stocks, citing elevated valuations and a lack of meaningful artificial intelligence (AI)-driven growth. Barclays analyst Tim Long lowered the ratings to Equal Weight from Overweight, adopting a more cautious outlook on IT hardware companies exposed to enterprise spending.
Buying the best Zacks Rank #1 (Strong Buy) momentum stocks in October as Q3 earnings season starts. DELL stock offers huge AI upside, with it set to nearly triple its EPS over the next two years.
Michael Dell said AI models need "safeguards and controls," and the government has a role to play. Anthropic's Dario Amodei and OpenAI's Sam Altman have backed efforts to pace frontier AI development as safety concerns intensify.