The bank double-downgraded Dell from overweight to underweight and downgraded HPE from overweight to equal weight.
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Data center stocks took a major hit on Monday after Morgan Stanley downgraded seven hardware companies, including Dell
and Hewlett Packard Enterprise
The bank double-downgraded Dell from overweight to underweight and downgraded HPE from overweight to equal weight.
Dell and HPE closed down 8% and 7%, respectively.
Morgan Stanley's updated price target implies that shares of Dell could slide 18% from here.
CFO Marie Myers said server revenue was hit by the timing of AI service shipments and lower-than-expected government spending.
Dell shares have more than doubled over the past year, but the AI-linked boom in demand that has boosted shares is largely priced…
Hewlett Packard Enterprise shares plunged in after-hours trading on Wednesday after the company issued disappointing guidance.
Shares have pulled back more than 30% in 2025.
Dell said it now plans to ship $20 billion of AI servers in its fiscal 2026, double what it sold last year.
