Dell Technologies Inc. (NYSE:DELL) stock plunged nearly 9% Friday amid a broader technology sell-off and a report linking Dell servers containing restricted NVIDIA chips to a Chinese data center.

The Nasdaq fell 1.68%, while the S&P 500 declined 0.75%. The Technology sector dropped 2.7%, making it the day's worst-performing sector.

Bloomberg Report Raises China Chip Concerns

A Chinese company founded by Alice Huang obtained servers containing restricted NVIDIA Corp. (NASDAQ:NVDA) chips that were installed at a Shanghai data center, Bloomberg reported Friday.

According to documents Bloomberg reviewed, Singapore-based Aperia Cloud Services purchased 22 Dell servers containing NVIDIA's H800 chips.

The chips were restricted from sale to China in 2023. However, the report added that the servers later appeared at a Shanghai data center linked to companies founded by Alice Huang.

Dell told Bloomberg it stopped selling to and supporting Aperia International in February 2025 because of concerns about unauthorized diversion.

The findings add to concerns surrounding U.S. export restrictions on advanced artificial intelligence chips.

Dell did not immediately respond to MarketDash's request for comment.

Earnings Ahead

Dell is scheduled to report quarterly earnings Nov. 24.

Analysts expect earnings of $6.55 per share, up from $2.59 a year earlier. Revenue is projected to reach $49.21 billion, up from $27 billion a year ago.

Dell trades at a price-to-earnings ratio of 21.6.

The stock carries a consensus Buy rating, with an average analyst price forecast of $584.76.

On Oct. 14, Barclays downgraded Dell to Equal-Weight and lowered its price forecast to $574.

Meanwhile, Mizuho raised its price forecast to $650 on Oct. 6 while maintaining an Outperform rating.

TD Cowen also raised its price forecast to $550 on Sept. 29 while maintaining a Hold rating.

DELL Price Action

DELL Stock Price Activity: Dell Technologies shares were down 8.78% at $338.58 at the time of publication on Friday, according to market data.