Tue Nov 18 12:30:00 UTC 2025: Okay, here’s a news article summarizing and rewriting the provided text:
Dell Shares Plunge After Morgan Stanley Downgrade Over Cost Concerns
New York, NY – Shares of Dell Technologies (NYSE: DELL) experienced a sharp decline of nearly 7% in morning trading today after Morgan Stanley issued a double downgrade on the stock. The investment bank lowered its rating from “Overweight” to “Underweight,” citing concerns about rising memory component costs, softening demand for traditional hardware, and the impact of lower profit margins on AI servers.
Morgan Stanley also slashed its price target for Dell from $144 to $110, projecting a more pessimistic outlook for the company’s earnings potential heading into 2026. Analysts pointed to surging prices for DRAM and NAND chips as a key factor impacting Dell’s future gross margins and earnings per share.
The downgrade comes amid broader market trends, including a recent rotation out of high-flying technology stocks as investors take profits after a strong run. The tech sector has been under increased scrutiny, with some analysts warning of overvaluation. Concerns about the economy are also creating an atmosphere of caution in the market.
The end of the recent government shutdown and the expected release of delayed economic reports are contributing to this cautious mood. Investors are bracing for a potential wave of data that could influence the Federal Reserve’s decisions regarding future interest rate cuts.
Despite the recent drop, Dell shares are still up 7.2% since the start of the year. However, at $124.92 per share, they remain 24.2% below their 52-week high of $164.88 from October 2025. Dell’s stock is known for its volatility, with 20 moves of greater than 5% over the last year.
While the market reacted negatively to the news, the size of the move suggests investors see the downgrade as meaningful but not fundamentally changing the business.
First Piper 