Dell's shares declined relative to the S&P 500 on Wednesday as market observers raised questions about the computer manufacturer's growth prospects. An analyst cautioned that shifts in the memory component market could restrict upside for Dell and competitor HPE, suggesting the semiconductor-dependent sector faces headwinds.
The warning underscores wider concerns about the sustainability of gains in technology stocks that rely heavily on chip supplies. Changes in memory component availability and pricing could constrain future performance for companies in this sector.