Dell stock falls 11% as Barclays downgrades Dell, HPE and NetApp on enterprise AI timing

Dell shares fell 11% on Wednesday, dragging down Hewlett-Packard Enterprise, Oracle and Super Micro, after Barclays downgraded Dell, HPE and NetApp to hold from buy.

Barclays said it has not seen a "meaningful AI inflection" in enterprise spending and attributes the companies' revenue gains mainly to the global memory shortage.

Barclays estimates only about a quarter of enterprise AI spend goes to hardware, and businesses typically allocate about 5% of IT budgets to AI.