Dell shares slide 11% after Barclays downgrades on AI concerns
Business
Dell's stock slid 11% on Wednesday, leading a wave of losses for data center companies like HPE, Oracle, and Super Micro.
Barclays downgraded Dell, HPE, and NetApp, pointing to doubts about how much businesses will keep spending on AI.
Hardware gets 25% enterprise AI spend
Barclays analysts say investor excitement around AI is cooling off, especially with only about a quarter of total enterprise AI spend going toward hardware.
Recent growth was mostly driven by memory chip shortages and price hikes rather than true demand.
Plus, stocks were hit this week after China's ChangXin Memory Technologies, or CXMT, reported progress over the weekend on a new chip structure.