Dell shares fall 11% after Barclays downgrades Dell, HPE and NetApp on AI spending
Overview
Barclays downgraded Dell, Hewlett-Packard Enterprise and NetApp to hold from buy, and Dell shares fell 11% on Wednesday, according to CNBC. Barclays analysts say they have not seen a "meaningful AI inflection" in enterprise spending and attribute the companies' strong enterprise revenue mainly to memory costs rather than a shift to enterprise AI.
Barclays estimates that only about a quarter of enterprise AI spending goes to hardware, and that businesses typically allocate about 5% of IT budgets to AI. HPE, Oracle and Super Micro also fell in the sell-off.
Written by AI from the articles below · updated Oct 14, 4:38 PM ET
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- CNBC · TechnologyNewsDell stock falls 11% as Barclays downgrades Dell, HPE and NetApp on enterprise AI timing
AIDell 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.
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