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Dell Technologies shares fell 11% on Wednesday, dragging down other data center equipment names amid growing concerns that enterprise spending on artificial intelligence may not support the current infrastructure buildout.
The decline extended to peers in the sector, with Hewlett-Packard Enterprise, Oracle, and Super Micro all joining the downward slide.
The selloff followed a client report from Barclays, where analysts downgraded their ratings on Dell, Hewlett-Packard Enterprise, and NetApp.
The firm cited "a significant run and on enterprise AI timing" as the primary reasons for the downgrade. Previously viewed as top performers in the market, these companies had seen substantial gains this year.
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