Hewlett Packard Enterprise (NYSE:HPE) Rating Lowered to Equal Weight at Barclays
Barclays said valuations have run ahead of enterprise AI spending, cutting Dell and HPE to Equal Weight and trimming price targets.
- Barclays analyst Tim Long downgraded Dell Technologies and Hewlett Packard Enterprise to Equal Weight from Overweight in morning trading, citing concerns that valuations have run too far ahead of meaningful enterprise AI spending.
- Dell shares fell 8% to $526.86, while Hewlett Packard Enterprise dropped 5% to $65.45, both far steeper declines than the Invesco QQQ Trust's 0.9% loss.
- Long argued he does not yet see a meaningful AI inflection in enterprise spending, noting that Dell's high-volume, thin-margin server business remains vulnerable when upside earnings surprises shrink.
- Super Micro Computer stock declined 4% to $37.37, a lighter drop than Dell's, as investors assess whether corporate customers will order AI hardware at current valuation assumptions.
- Future share-price movement for Dell and Hewlett Packard Enterprise depends on whether corporate customers increase AI hardware orders, as larger upside earnings surprises could challenge Barclays' cautious view.
19 Articles
19 Articles
Barclays Downgrades Dell (NYSE: DELL), HPE And NetApp After Valuations Run Too Far Ahead Of AI Reality
Barclays downgraded Dell Technologies (NYSE: DELL), Hewlett Packard Enterprise, and NetApp to Equal Weight from Overweight, citing stretched valuations and no meaningful enterprise AI inflection yet. Analyst Tim Long noted that the seven enterprise-exposed stocks in his coverage have risen an average of approximately 140% this year, compared to a 14% gain for the S&P […]
Dell Falls 8% as Barclays Cuts Rating and Target to $574; Hewlett Packard Enterprise Drops 5%, Super Micro Computer Slides 4%
Dell Technologies (NYSE:DELL) stock is down 8% to $526.86 in morning trading after Barclays cut its rating on the shares to Equal Weight from Overweight. The call questions how much more upside Wall Street can assign to a company whose artificial intelligence (AI) server business is still expanding quickly. That tension is now central to […]
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