Dell shares drop 20% this week: Is the AI sell-off a buying opportunity?

Dell Technologies shares have fallen sharply this week, with market capitalization dropping from $375 billion to approximately $300 billion amid a broader sell-off in AI infrastructure companies. The decline follows a record high of $595 per share. The sell-off is driven by profit-taking after a 435% year-to-date gain and a Gartner warning that AI leaders may face major writedowns by 2030. Dell's fundamentals remain strong, with Q2 revenue up 58% to $47 billion and AI server orders reaching $60.9 billion. Technical analysis shows a double-top pattern with a potential downside target of $443 per share. Analysts remain moderately optimistic, with price targets ranging from $550 to $650, while broader concerns about AI spending sustainability persist across the sector.