- Barclays downgraded Dell, HPE and NetApp to hold from buy on enterprise AI timing, and Dell fell 11% on Wednesday.
- Barclays says enterprise revenue gains reflect memory costs rather than enterprise AI, and businesses typically allocate just 5% of IT budgets to AI.
- Dell was up more than 300% this year before the sell-off, and Oracle fell 9% while CoreWeave fell 15%, erasing its 2026 gains.
- Memory stocks also fell after China's CXMT reported progress on a new chip structure, and Micron is down 11% for the week.
Quotes
“We believe the strong enterprise revenues are more of a function of memory costs than a move to enterprise AI at this time.”
“There is growing sentiment about enterprise AI adoption creating a hardware refresh”