Dell, HPE, and Super Micro shares decline sharply amid profit-taking, trimming year-to-date gains despite strong AI server demand.
Dell Technologies fell 14% to $394 midday Wednesday, dragging AI hardware peers lower as investors locked in gains after a prolonged rally. Hewlett Packard Enterprise and Super Micro Computer slid 8% and 5% to $45.67 and $26.26, respectively, with no clear catalyst beyond sector rotation.
The pullback follows a blockbuster year for AI infrastructure stocks, with Dell up 219% year-to-date and HPE rising 92%. Super Micro, however, remains down 9% for the year. Dell’s Q1 revenue surged 88% year-over-year, and the company reaffirmed its $60 billion AI server guidance for FY27, though margin pressures persist.
The NASDAQ-100 tracking ETF QQQ dipped just 1%, signaling the selloff is concentrated in high-beta AI hardware rather than broad tech. Dell’s beta of 1.4 amplifies volatility, reflecting crowded positioning in the sector.