Dell Technologies shares plunge amid AI spending concerns

Dell Technologies shares fell 11.6% following a downgrade from Barclays, which moved the company from Overweight to Equal Weight. The downgrade cited concerns regarding stretched valuations after a 300% gain in 2026 and potential slowing growth as memory chip prices normalize.

The decline contributed to a broader sell-off in the AI physical infrastructure sector, impacting companies such as CoreWeave, Nebius, and Oracle. This market movement, combined with a hot Consumer Price Index report, resulted in an estimated $80 billion loss in market value across these related firms.

Despite the volatility, Dell reported a record $95 billion AI server backlog in its most recent quarterly results. CEO Michael Dell remains optimistic about future demand, with AI server revenue projected to reach $75 billion for the current fiscal year.