Dell Technologies shares fell 8.78% on Friday after a report said Dell servers equipped with export-restricted Nvidia H800 chips had surfaced at a data center in Shanghai. The report renewed questions about how restricted AI chips and server systems move through sales channels. Dell said it stopped selling to and supporting a related company in February 2025 over concerns about unauthorized transfers.
22 servers bought through a Singapore company
Documents show that Singapore-based Aperia Cloud Services bought 22 Dell servers fitted with Nvidia H800 chips. Sales of the H800 to China have been restricted since 2023. The servers later appeared at a Shanghai data center linked to a company founded by Alice Huang.
Public information does not explain how the equipment was moved from Singapore to Shanghai, identify its end user or specify how it was used. Dell said it ended its sales and support relationship with Aperia International in February 2025 because it was concerned that equipment could be transferred without authorization. The name cited in the documents, Aperia Cloud Services, differs from the Aperia International entity named by Dell; available information does not clarify the relationship between them.
The questions extend beyond the servers themselves to how export controls are enforced when restrictions apply to complete systems as well as chips. Investors may focus on Dell’s sales-channel controls and related business risks, although no information so far quantifies any impact on the company’s financial results. Dell had not provided further comment at the time of publication.
Dell falls as technology stocks slide
U.S. technology shares broadly declined on Friday. The Nasdaq Composite fell 1.68%, the S&P 500 lost 0.75%, and the technology sector dropped 2.7%, making it the weakest-performing sector of the day. Dell shares came under additional pressure, trading down 8.78% at $338.58 at the time of publication.
The decline therefore came amid a broader retreat in technology stocks, rather than a rising sector-wide market. The report’s questions about export controls and the servers’ route to Shanghai added to the market’s focus, but available information does not quantify how much each factor contributed to Dell’s share-price move.
Quarterly results due November 24
Dell plans to report quarterly results on November 24. Analysts expect earnings per share of $6.55, up from $2.59 in the same period a year earlier, and revenue of $49.21 billion, compared with $27 billion a year ago. Dell currently trades at a price-to-earnings ratio of 21.6.
The analyst consensus rating is Buy, with an average price target of $584.76. Recent views have varied: Barclays downgraded Dell to Equal Weight on October 14 and cut its target to $574; Mizuho raised its target to $650 on October 6 while maintaining an Outperform rating; and TD Cowen raised its target to $550 on September 29, keeping a Hold rating.
Ahead of the results, investors will be watching both Dell’s earnings outlook and any further information about the movement of servers carrying restricted chips. Dell has said it stopped sales and support to Aperia International. How the servers reached Shanghai and how they were subsequently used remain undisclosed.