Tech Stocks Diverged as Chip Concerns Hit Dell While Alphabet Gained on Berkshire Bet
Dell Technologies shares tumbled over 8% after Morgan Stanley's double-downgrade, citing margin pressures from soaring memory chip prices. The bearish call rippled across hardware stocks, with Hewlett Packard Enterprise also facing a rating cut.
Alphabet climbed as Berkshire Hathaway's new stake revealed Warren Buffett's growing confidence in Google's parent company. The divergence highlighted selective institutional positioning amid broader market declines.
Major indexes retreated ahead of Nvidia's earnings report, with the Nasdaq dropping 0.8% and the S&P 500 falling 0.9%. Market participants await clarity on whether AI-related stocks can maintain their leadership as chip sector volatility persists.