Core Insights - The artificial intelligence boom is driving up memory chip prices, negatively impacting computer hardware manufacturers like Dell, HP, and Hewlett Packard Enterprise, according to a Morgan Stanley report [3][4][6] Company Performance - Dell Technologies shares have decreased by over 10% in recent trading, leading declines in the S&P 500, while Hewlett Packard Enterprise and HP shares have also seen significant drops of 8% and 7% respectively [2][6] - Dell shares have lost more than 25% of their value since reaching a 52-week high two weeks ago [1] Market Analysis - Morgan Stanley analysts indicate that the current pricing "supercycle" for NAND flash memory and DRAM semiconductors poses a downside risk to hardware OEM earnings, particularly as component costs rise [4][6] - Despite hardware valuations being near record highs, the increasing costs of memory chips could pressure profit margins for companies in this sector [3][4] Rating Changes - Morgan Stanley downgraded Dell from "overweight" to "underweight," HP from "equal-weight" to "underweight," and Hewlett Packard Enterprise from "overweight" to "equal-weight" due to the impact of rising memory chip prices [4][6] - The firm also lowered ratings for several other companies while maintaining a bullish outlook on certain IT hardware firms like Seagate Technology and Western Digital [4]

false Trading Ideas Stock Market Crypto Forex Economic Commodity Video World Dell stock: why it's worth unloading heading into 2026 Devesh Kumar Sub-Editor Devesh Kumar Sub-Editor Devesh is a sub-editor at Invezz, where he writes and edits news reports. He is dedicated to clear communication, collaborative teamwork, and delivering practical financial insights. read more. Written onNov 17, 2025 Reading time 3 minutes Written by Wajeeh KhanWajeeh K. Wajeeh Khan Staff Reporter Wajeeh Khan Staff Reporter Wajeeh ...

Group 1 - Dell Technologies Inc's stock has dropped significantly, currently down 7% to $124.44 after a double downgrade from Morgan Stanley to "underweight" from "overweight," with a price target cut from $144 to $110 due to rising memory drive prices [1] - The stock has been in decline since reaching a one-year high of $167.94 on November 3, now on track for its 12th loss in 14 trading sessions, trading at its lowest levels since early September [2] - The 160-day moving average is at today's low, potentially limiting further losses, while the 14-day relative strength index (RSI) is at 14, indicating the stock is in "oversold" territory [2] Group 2 - Options trading has increased significantly following the downgrade, with 16,000 calls and 13,000 puts exchanged, which is double the typical options volume [3] - The most popular options contracts are the November 120 put and the November 138 call [3] - Over the past 10 weeks, calls have been more popular than usual, with a 50-day call/put volume ratio of 2.52, the highest in the past year [4]

Core Insights - Morgan Stanley warns that soaring memory-chip prices will negatively impact profit margins for computer makers, leading to downgrades for several companies including Dell Technologies [1][5][6] Memory Market Dynamics - The memory market, particularly Nand and DRAM, is experiencing a pricing 'supercycle' due to increased demand from hyperscalers, a shift to high bandwidth memory (HBM), and previous underinvestment in Nand [2][4] - Spot prices for memory commodities have surged by 50-300% over the past six months, with contract prices expected to rise by double digits each quarter through 2026. Memory fulfillment rates may drop to as low as 40% in the next two quarters [3] Company-Specific Downgrades - Dell Technologies' stock was downgraded from overweight to underweight, with a price target reduced from $144 to $110. Hewlett Packard Enterprise's rating was cut to equal weight with a target of $25, down from $28. HP's stock was downgraded to underweight with a target of $24, down from $26 [5][6] - Other companies affected include Asustek, Giga-Byte Technology, Lenovo, and Pegatron, which were also downgraded by Morgan Stanley [6] Market Reactions - Following the downgrades, Dell's stock fell over 6% to $124.53, HPE's stock dropped more than 6% to $21.34, and HP's stock decreased over 3% to $23.58. In contrast, memory-chip makers Micron Technology and Sandisk are trading at record highs [6]

Core Viewpoint - Dell Technologies (DELL.US) experienced a 7% decline in stock price, closing at $124.40, following a downgrade by Morgan Stanley from "Overweight" to "Underweight" and a reduction in target price from $144 to $110, raising concerns about Dell's profit outlook [1] Group 1: Stock Performance - Dell's stock dropped 7% to $124.40 after the downgrade by Morgan Stanley [1] - Morgan Stanley's target price for Dell was lowered from $144 to $110 [1] Group 2: Market Concerns - The report highlighted a significant increase in DRAM spot prices, which surged 260% over the past two months [1] - NAND flash memory prices have risen over 50% since the beginning of the year [1] Group 3: Cost Impact on Dell - DRAM costs account for 10%-70% of the material costs in Dell's high-end products [1] - A 10% increase in storage chip prices could lead to a decline in Dell's gross margin by 45 to 150 basis points [1]

Market Overview - On November 17, U.S. stock indices opened lower, with the Dow Jones down 0.27%, Nasdaq down 0.53%, and S&P 500 down 0.44% [1] - The current values for the indices are as follows: Dow Jones Industrial Average at 47022.46, Nasdaq at 22780.06, and S&P 500 at 6704.63 [2] Sector Performance - Technology stocks mostly declined, with Dell Technologies dropping approximately 7%, and Nvidia, Apple, and Tesla each falling over 1% [2] - Google saw an increase of over 3%, and Berkshire Hathaway's initial investment in Google attracted attention [2] Chinese Stocks - Chinese stocks exhibited mixed performance, with Alibaba rising over 2%, while Canadian Solar and Xpeng Motors fell by more than 3% [2]

Core Viewpoint - Morgan Stanley has significantly downgraded the ratings of major hardware manufacturers including Dell Technologies, HP, and HPE, citing increasing pressure on profit margins due to soaring memory prices and weakening non-AI hardware demand [1] Group 1: Memory Price Impact - The industry is currently experiencing a "memory supercycle," with NAND and DRAM spot prices rising approximately 50% to 300% over the past six months [1] - Historical data indicates that hardware OEM gross margins typically decline 60 basis points within 6 to 12 months after memory costs begin to rise, contrary to market expectations of slight expansion [1] Group 2: Dell Technologies - Morgan Stanley downgraded Dell's rating from "Overweight" to "Underweight," lowering the target price from $144 to $110, due to the impact of rising memory costs and structurally low profit margins in AI servers [2] - The forecast for Dell's fiscal year 2027 gross margin has been significantly reduced to 18.2%, down 220 basis points from previous estimates, with a 12% decrease in earnings per share (EPS) projections [2] Group 3: HP Inc. - HP's rating has been downgraded from "Equal Weight" to "Underweight," with the target price reduced from $26 to $24, as rising DRAM and NAND prices are expected to squeeze profit margins in its personal systems business [3] - The forecast for HP's fiscal year 2026 gross margin has been lowered by 90 basis points to 19.7%, which is 130 basis points below market consensus, despite an increase in revenue expectations to $56.5 billion [3] Group 4: HPE (Hewlett Packard Enterprise) - HPE's rating has been downgraded from "Overweight" to "Equal Weight," with the target price decreased from $28 to $25, as the integration of Juniper Networks is expected to limit overall profitability amid rising component costs [4] - The forecast for HPE's fiscal year 2026 gross margin has been cut by 260 basis points to 32.9%, with EPS revised down from $2.52 to $2.18 [4] Group 5: Industry Outlook - Dell and HP are identified as the most vulnerable U.S. hardware companies to the impact of rising memory prices, appearing at the top of Morgan Stanley's "most vulnerable list" [5] - The firm emphasizes a preference for technology companies with higher diversification or software revenue, warning that tight memory supply and high prices will pose greater downside risks for the industry until 2026 [5]

每经AI快讯，11月17日，戴尔科技跌7.7%，惠普跌4.2%，摩根士丹利下调评级。 ...

U.S. stock futures were mixed this morning, with the Dow futures falling around 0.1% on Monday.Shares of Xpeng Inc – ADR (NYSE:XPEV) fell sharply in pre-market trading after the company reported third-quarter financial results.The company delivered 20.38 billion Chinese yuan ($2.86 billion) in quarterly revenue, a 101.8% year-over-year (Y/Y) jump that landed just shy of the $2.87 billion consensus forecast. Adjusted net loss per ADS was 0.16 Chinese yuan versus the analyst consensus loss estimate of 0.47 Ch ...

U.S. stock futures were mixed this morning, with the Dow futures falling around 0.1% on Monday.Shares of Xpeng Inc – ADR (NYSE:XPEV) fell sharply in pre-market trading after the company reported third-quarter financial results.The company delivered 20.38 billion Chinese yuan ($2.86 billion) in quarterly revenue, a 101.8% year-over-year (Y/Y) jump that landed just shy of the $2.87 billion consensus forecast. Adjusted net loss per ADS was 0.16 Chinese yuan versus the analyst consensus loss estimate of 0.47 Ch ...