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Michael Dell said Dell Technologies relies on just-in-time manufacturing rather than accumulating long-term debt to fund AI infrastructure projects, unlike many other tech firms. He drew on his experience surviving the dot-com bust to explain the company's approach to managing risk amid heavy industry investment in AI.
Dell Technologies stock fell 11% on Wednesday, pulling down Hewlett-Packard Enterprise, Oracle, Super Micro and NetApp amid worries that enterprise AI spending won't match the scale of the ongoing data center buildout. Barclays analysts cut ratings on Dell, HPE and NetApp from buy to hold, saying they see no 'meaningful AI inflection' in enterprise demand and attributing recent revenue gains largely to a global memory shortage rather than AI adoption.
In an interview with CNBC's David Faber, Dell Technologies CEO Michael Dell said AI models need built-in safeguards and controls, comparing the technology to fire that can both help and harm. He said government has a role to play alongside companies setting their own permission limits, though he declined to specify what government regulation should look like, noting he is not a policymaker.
Nike will be removed from the S&P 100 index on September 21, ending an 18-year run, as its market capitalization has fallen from a 2021 peak of $264 billion to about $57 billion today. The sportswear giant remains in the broader S&P 500, but its removal from the top-100 index reflects a sustained decline, including a 36% drop in market cap in 2026 alone. Honeywell Aerospace, Simon Property Group and Colgate-Palmolive are also exiting the index the same day, replaced by tech firms like Dell, Palo Alto Networks, Arista Networks and Sandisk.
Dell Technologies stock surged 10% on Friday after RBC Capital Markets began coverage with an outperform rating and a $640 price target. The move adds to a rally that has already lifted Dell shares nearly 350% in 2026, driven by its growing role supplying Nvidia-based servers to cloud and enterprise customers building out AI infrastructure.
Dell Technologies reported fiscal second-quarter revenue of $46.97 billion and adjusted earnings of $7.04 per share, both well above analyst expectations, driven by strong AI server sales. The company raised its full-year guidance to $25.50 in adjusted earnings per share on $192 billion in revenue, up sharply from earlier projections of $17.90 per share and $165-169 billion.