Dell stock cut to sell at Barclays as AI won’t be enough to offset PC challenges

Barclays analysts downgraded the rating on Dell Technologies (NYSE:) from Equal Weight to Underweight after the recent rally in shares.

The price target remains unchanged at $53 per share, signaling a downside risk of over 20%.

Barclays anticipates that Dell will continue to face challenges in both the PC and Server/Storage end markets. These challenges are attributed to broader macroeconomic conditions that may impact demand in these sectors.

Despite the increasing focus on artificial intelligence (AI) and its potential, Barclays does not believe that AI will be enough to fully offset the pressures facing DELL in the PC and Server/Storage markets.

“While AI headlines are positive, we are unsure of the timing and ultimate financial impact for DELL,” the analysts said in a note.

The analysts also noted that valuation “has moved out of near- and long-term trading ranges.”

Dell shares fell nearly 3% in premarket Thursday.