DELL

Dell Technologies is facing increased demand for its AI infrastructure, particularly AI servers. However, this demand is driving up costs due to the shortage of memory and storage chips, which is affecting the entire PC industry. In response, Dell has announced price hikes across its commercial product lines, which could negatively impact profitability and lead to a decline in stock price.

Investors are rotating out of AI-linked high-flyers following underwhelming earnings updates from companies like Oracle and Broadcom. This shift in investor sentiment could be contributing to the decline in Dell's stock price.