Shares of Dell Technologies dropped 11.6% on October 14, 2026, closing at approximately $506. The decline followed a downgrade by Barclays, which shifted the stock from Overweight to Equal Weight and lowered its price target from $603 to $574.
Analyst Tim Long cited concerns over the company's valuation, which rose over 300% in 2026, and potential growth deceleration as memory chip prices normalize. The market reaction was compounded by a high September Consumer Price Index report, which raised concerns about rising borrowing costs.
The sell-off extended to other companies in the AI infrastructure sector, including CoreWeave, Nebius, and Oracle, resulting in a combined loss of an estimated $80 billion in market value. CoreWeave saw bond yields rise, with one bond reaching nearly 15%.
Despite the market downturn, Dell reported a record $95 billion backlog for AI servers and an 89% year-over-year increase in infrastructure solutions revenue. The company expects AI server revenue to reach $75 billion this fiscal year and potentially $100 billion by fiscal 2028.
CEO Michael Dell maintains that demand for AI infrastructure will exceed supply through 2030. Wall Street analysts currently maintain a consensus rating of Moderate Buy with an average price target of $598.
