Dell shares slide after Nvidia CEO Huang resigns

Dell Technologies shares fell sharply on Thursday, November 12, as a selloff spread across computer hardware and AI infrastructure stocks. The selling came one day after a strong rebound in the sector. AlphaStreet reported that the decline hit several of Dell's peers at once: SanDisk, Super Micro Computer, Western Digital and Hewlett Packard Enterprise all fell as well. The biggest trigger was a leadership shock at Nvidia, whose chips power most of the AI servers that Dell and its rivals sell.news.alphastreet.com

Nvidia's CEO exit hits server makers

Before the market opened, Nvidia's board announced that Jensen Huang had resigned as president, chief executive and board member, effective immediately. Chief financial officer Colette Kress was named interim CEO while the board searches for a permanent successor. Huang stepped down days after the board said it would look into whether he had been the target of a foreign intelligence effort, and shortly after The New York Times reported that he had an affair with an executive who reported to him, according to CNN.sec.gov+1

Investing.com reported that the sudden leadership gap at Nvidia created uncertainty across the AI infrastructure trade. It described Dell, one of Nvidia's largest server partners with a reported $95 billion backlog of AI server orders, as "caught squarely in the crossfire". The losses also reached AI optical, memory and component suppliers, including Micron Technology. In premarket trading, memory and storage names such as Seagate Technology also slipped.blockonomi.com+2

Margin worries and profit-taking

Other factors added to the pressure. TradingKey pointed to margin worries and profit-taking in AI infrastructure stocks. It noted that high prices for DRAM and NAND memory are squeezing server margins, and that a commercial PC refresh is moving more slowly than expected. A UBS downgrade of Dell to neutral was already weighing on the stock before the session. Insider-selling filings on Form 144 and Form 4 added to the caution.tradingkey.com+1

Thursday's drop wiped out much of the gain Dell made a day earlier. On Wednesday, strong results from CoreWeave revived bets on AI server demand. The broader market offered little support. The S&P 500 and Nasdaq Composite both slipped in morning trading.in.investing.com+1

Demand outlook versus sentiment

The selloff came on the same day Gartner forecast that spending on AI-optimized servers could reach $957.2 billion in 2027, up from an estimated $527.6 billion in 2026. Before the latest rebound, Dell shares fell 34.6% between October 13 and November 11.247wallst.com+1

Investors may get a clearer view soon. Nvidia plans to report third-quarter results on November 17, and Dell's fiscal third-quarter results call is scheduled for November 24.in.investing.com+1