AI hardware stocks retreat as Dell, HPE and Super Micro Computer face profit-taking
Dell, Hewlett Packard Enterprise and Super Micro Computer see significant intraday losses, though year-to-date gains remain robust for Dell and HPE as the broader market holds steady.
Shares in Dell Technologies, Hewlett Packard Enterprise (HPE) and Super Micro Computer declined sharply on 15 July 2026, with Dell dropping 14%, HPE falling 8% and Super Micro Computer slipping 5%. The selloff was attributed to profit-taking and crowded positioning in high-beta AI hardware stocks rather than a specific company catalyst. Despite the decline, Dell and HPE retained significant year-to-date gains of 219% and 92% respectively. The broader Invesco QQQ Trust slid just 1%, indicating the sell-off was concentrated in AI server hardware rather than the wider technology sector.
Dell Technologies shares fell to $394 at midday, leading the pullback, while HPE shares dropped to $45.67 and Super Micro Computer slipped to $26.26. The move appears consistent with broad AI infrastructure risk-off sentiment and positioning adjustments after extended runs in high-beta hardware names. A GF Securities downgrade of Dell to 'Hold' on valuation was identified as older news and not the trigger for the current decline.
Dell’s Q1 FY27 revenue was $43.84 billion, an 88% increase year-on-year, with AI-optimized server revenue of $16.13 billion. Management raised FY27 revenue guidance to $165 billion–$169 billion, targeting $60 billion in AI server revenue. However, Dell’s Q1 FY27 gross margin compressed to 18% from 21% a year earlier, attributed to the mix of AI products. Analysts maintain an average price target of $487 for Dell.
HPE’s forward earnings multiple is 12x, following a 148% year-on-year increase in networking revenue due to the Juniper Networks integration. Super Micro Computer trades at a forward multiple of 9x, with an independent board review of export-control-related transactions ongoing. The company remains down 9% year-to-date, contrasting with the substantial gains posted by its peers.
The Invesco QQQ Trust’s modest 1% decline underscores that the volatility is isolated to the AI server hardware segment. Dell’s beta of 1.376 amplifies positioning swings, meaning days like this can produce outsized moves. Investors are watching whether Dell holds above $390 into the close and whether HPE and Super Micro Computer stabilize alongside chip names in the afternoon session.
