Dell Technologies’ stock dropped 11% on Wednesday, pulling other data‑center makers lower. Barclays analysts said they haven’t seen a meaningful enterprise AI spending inflection and cut their ratings on Dell, Hewlett‑Packard Enterprise and NetApp. The downgrade follows worries that AI projects rely on debt and that only about 5% of IT budgets go to AI, with most hardware revenue tied to higher memory costs.
Why it matters
Investors in tech hardware now see higher risk that AI‑related sales may not materialise as quickly as expected.
