Explore the latest developments concerning Celestica and Dell.
Celestica and Dell Just Dropped 22% in a Week. Is It Time to Sell, or Load Up?
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Celestica (CLS) fell 22% last week, and Dell Technologies (DELL) dropped 22% too. Neither company had bad news of its own. Most of the selling came after the Democrats swept the Nov. 3 midterms.
Democrat Gina Hinojosa beat Gov. Greg Abbott in Texas after promising a pause on new data centers. “When I am governor, I will issue a moratorium, a ban, on all data center approvals until laws can be passed by the legislature to protect Texans,” she said in a video on X in late October.
That’s a big deal, since Texas holds about 27% of the data center capacity planned in the US, according to Wells Fargo. The AI hardware selloff deepened on Nov. 5.
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$95 Billion Backlog And A 42% Monthly Collapse: What's Really Driving The AI Server Bounce For Dell (NYSE: DELL), Super Micro (NASDAQ: SMCI), And HPE (NYSE: HPE)
Thursday’s midterm-driven rout left Dell Technologies (NYSE: DELL), Super Micro Computer (NASDAQ: SMCI), and Hewlett Packard Enterprise (NYSE: HPE) each down between 34% and 42% over the prior month, making Friday’s partial recovery look modest at best.
Dell, whose shares touched $596 at their 52-week high, is now trading at $335.36, a 6% gain on the day that still leaves the stock far below where it was trading just weeks ago.
Super Micro has clawed back a similar 6%, putting shares at $28.73, while Hewlett Packard Enterprise is trailing the group with a more modest 2% rise to $44.86.
The November 5 sell-off was triggered by investor concern that Democratic control of Congress, combined with the policy direction of Texas’s incoming governor, could slow the pace of data center construction across the country.
For more detailed information, explore updates concerning Celestica and Dell.
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