HP, Dell face doubts over PC market recovery due to weak forecasts, sparking share selloff.

From Investing.com: 2024-11-27 07:11:08

Shares of Dell and HP dropped after both companies issued forecasts that raised doubts about a market recovery driven by AI-enabled PCs. Dell fell 13% with a $13 billion loss in market value, while HP dropped 9%, shrinking by over $3 billion. Traditional PC demand weakened post-pandemic, while AI adoption remains low.

Despite expectations of a computer upgrade cycle due to Windows 11, adoption has been slower than anticipated. HP CEO Enrique Lores expects the impact of the upgrade to be more pronounced in 2025. Dell’s AI server business saw a 58% revenue jump, driven by cloud companies seeking AI-capable servers.

Dell’s strong performance in the server market has helped its shares climb 85% this year, outperforming HP. However, concerns over slow Nvidia AI chip rollout may impact Dell’s sales. HP shares trade at 10.84 times analysts’ profit estimates, lower than Dell and Microsoft at 15.51 and 30.94 respectively.



Read more at Investing.com: HP, Dell’s weak forecasts spark share selloff, doubts over PC market recovery By Reuters