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AI-Hardware Stocks Plunge After Reports of Hyperscaler Overcapacity

The selloff highlights valuation risk and rising component costs that could slow future server orders.

Overview

  • Dell shares dropped roughly 12–13% on Wednesday after reports that Meta may lease surplus AI training and inference capacity, with the stock touching an intraday low near $397.69.
  • Company insiders sold about $1.56 billion of Dell stock over the past three months, and GF Securities downgraded the name to Hold, intensifying selling pressure.
  • Memory and flash suppliers fell sharply as Micron slid roughly 9% on reports Washington is weighing tighter high-bandwidth memory export curbs and SanDisk fell after a research firm cut its near-term NAND outlook.
  • Traders and some analysts called the move a valuation reset after a multi-month rally, but others warned that rising memory costs and potential GPU constraints could quickly compress the slimmer gross margins on AI-optimized servers.
  • Investors will watch upcoming earnings, hyperscaler capacity signals and memory price trends for signs of whether this is a short-lived correction or a longer pullback in AI infrastructure demand.