By Jaures Yip
Publication Date: 2025-11-17 21:08:00
Igor Golovnov | Light rocket | fake images
Data center stocks took a big hit on Monday after Morgan Stanley downgraded seven hardware companies, including Dell and Hewlett Packard Company.
The bank twice downgraded Dell, from overweight to underweight, and downgraded HPE, from overweight to equal.
Dell and HPE closed with losses of 8% and 7%, respectively.
HP Inc., Asustek and pegatron were also downgraded from equal weight to low weight, while gigabytes and lenovo They went from the same weight to overweight. All companies saw their shares fall by up to 6%.
Morgan Stanley analysts wrote that computer makers are in the midst of an unprecedented pricing “supercycle,” as hyperscalers continue to accelerate data center demanddriving hardware valuations to all-time highs.
Rising costs of DRAM, dynamic random access memory, and NAND memory, a flash memory typically used in memory cards, could put pressure on margins, especially as memory compliance rates may fall as low as…
