Dell Technologies Inc. (DELL) saw its stock price plummet by 5.07% during intraday trading on Thursday. The sharp decline extended losses from the previous session, contributing to a significant downturn for the technology hardware leader.

The sell-off is primarily attributed to mounting fears on Wall Street regarding the sustainability of the artificial intelligence spending boom. The broader AI trade has been losing momentum, sparking concerns about a potential industry-wide overbuild. This sentiment has pressured not only Dell but also other semiconductor and hardware stocks throughout the trading session.

Compounding the downward pressure, major shareholder Silver Lake Group and its affiliates have continued systematic selling of Dell shares. Entities including SL SPV-2, Silver Lake Partners IV, and Silver Lake Partners V DE have conducted multiple rounds of disposals by converting Class B shares to Class C and selling them in the market over recent months. This persistent selling cadence from a key institutional holder has weighed heavily on near-term market sentiment.

Furthermore, the decline was amplified by broad weakness across the technology hardware sector, with peers like SanDisk, Micron Technology, and Western Digital also trading lower. Despite some positive analyst actions, including JPMorgan raising its price target on the stock, these factors collectively drove the significant intraday drop.