Dell Technologies Plunges Over 9% as Memory Inflation Raises Hardware Costs
Dell Technologies shares slid 9.21% Thursday after Cisco’s fiscal Q3 gross margin guidance missed consensus, highlighting rising memory inflation and hardware cost pressures. The broader tech selloff erased over $500 billion in market value across ten heavyweight names as legacy hardware peers HP and Lenovo also warned of supply constraints.
1. Tech Selloff Hits Legacy Hardware
Thursday’s tech downturn wiped more than $500 billion off ten major names, with legacy hardware firms bearing the brunt. Dell Technologies shares tumbled 9.21%, while HP fell over 6% and Lenovo flagged weakening PC shipments driven by component shortages.
2. Cisco’s Margin Guidance Sparks Warnings
Cisco beat revenue and EPS estimates but issued fiscal Q3 gross margin guidance of 65.5%–66.5%, below the 68% consensus. Management cited memory inflation and higher commodity costs, prompting investors to reassess hardware profitability and pricing dynamics.
3. Dell Technologies Faces Cost Pressures
Dell’s sharp share decline reflects concerns over rising input costs and supply chain strains that may squeeze margins through fiscal 2026. The company is evaluating pricing actions and long-term supplier agreements to mitigate memory and component inflation impacts.