Dell stock plunges 11%, leading data center sell-off on concerns about 'enterprise AI timing'

Dell shares plummeted 11% on Wednesday and dragged down other data center equipment names on mounting concerns that enterprise spending on artificial intelligence won't justify the AI buildout. Hewlett-Packard Enterprise , Oracle and Super Micro all joined in the downward slide. In a report to clients on Wednesday, analysts at Barclays downgraded its rating on Dell, HPE and NetApp , "after a significant run and on enterprise AI timing." Makers of data center servers and other backend equipment have been favored on Wall Street this year on optimism that they'll be selling huge volumes of gear tied to demand for AI chips and systems for years into the future.