Dell shares slip on AI safety jitters

Dell Technologies shares fell to $550 in premarket trading from Friday’s close of $567 after investors sold technology stocks amid concerns about artificial intelligence safety and profit-taking. The pullback followed broader weakness among AI-related companies.

Nvidia was down about 2.8% in early trading, while memory firms including Micron and SanDisk dropped more than 5%. Market participants attributed the weakness to a mix of profit-taking and renewed anxiety after public warnings about rapid AI development.

A former Anthropic employee posted on social media warning that unchecked AI development could pose existential risks. Anthropic founder Dario Amodei urged the industry to slow the rollout of larger models, and leaders at OpenAI, DeepMind and SpaceX signaled support for caution on rapid scaling. Traders and analysts reassessed near-term demand assumptions for AI infrastructure following those statements.

Some observers warned the comments could lead to delayed or canceled data center and server orders. Other market participants pointed to competition among U.S. and Chinese AI firms, including newer companies such as Z.ai, DeepSeek and Moonshot, as a factor that could sustain demand for compute capacity.

Dell reported second-quarter revenue of $47 billion, a 58% increase from a year earlier, and gave full-year revenue guidance around $192 billion, implying about a 69% year-over-year rise. Its Infrastructure Solutions Group generated roughly $31.8 billion, up about 89%, and revenue for AI-optimized servers doubled in the quarter.

The Client Solutions Group posted quarterly revenue near $15 billion, up about 20%, with commercial PC sales around $13.2 billion, an increase of roughly 22%. Management has increased the company’s share repurchase program and described the stock as undervalued.

On technical charts, Dell shares have rallied from a July low near $356 to an August high around $567 and remain above the 50-day and 100-day exponential moving averages and the Supertrend indicator. Some technical analysts expect a retest of prior resistance-turned-support near $513 before a potential move toward the $600 area.

Early-session price swings reflected the combination of profit-taking and headlines about AI safety. Investors will watch further industry statements and enterprise buying patterns for signs of changes in demand for servers and data center capacity.