Dell, HP Shares Slide as Intel Warns PC Slump Will Run Into 2027
Dell (DELL) and HP (HPQ) shares dropped 9.5% and 7% respectively in premarket trading after Intel (INTC) forecasted a prolonged PC slump, with shipments expected to decline 12% in 2026 and 10% in 2027. Intel's revenue and earnings missed estimates, causing its stock to plummet 25%. Both Dell and HP have significant exposure to PC sales, with client revenue making up 32% and 75% of their total revenue respectively. Analysts have diverging price targets for the two companies.
How this was made
The 30-second read
Why it matters
The warning triggered immediate pre‑market sell‑offs in Dell, HP, and Intel, highlighting the sensitivity of PC OEMs to Intel's outlook.
Market read
The article signals a near‑term bearish bias for PC hardware stocks, with potential spillover to related semiconductor and component suppliers.
What to watch
Dell's growing data‑center business and HP's services segment may cushion overall earnings despite PC weakness.
Background
Intel's CEO Lip‑Bu Tan warned of a 12% PC shipment drop this year and an additional 10% in 2027, citing memory shortages and component price pressure.
Ticker impact
Dell shares fell about 9.5% in pre‑market after Intel warned the PC slump will extend into 2027.
likely further downside as investors reassess revenue forecasts
Intel's guidance directly impacts Dell's core client revenue, and the sharp pre‑market drop signals continued selling.
HP shares dropped roughly 7% pre‑market following Intel's warning of a prolonged PC downturn.
downward pressure expected as the market prices in weaker PC shipments
HP's client revenue is heavily exposed to PC sales; Intel's outlook reduces near‑term growth expectations.
Intel stock plunged over 25% after reporting a revenue miss and forecasting a deep PC shipment decline through 2027.
further pressure as the market digests lower revenue and guidance
The earnings miss and forward guidance are primary drivers of the large sell‑off.
Market effects
PC hardware sector faces heightened risk; related OEMs and component suppliers may see broader weakness.
U.S. technology stocks pressured; Asian PC manufacturers could feel downstream demand slowdown.
The guidance affects global PC supply chain, influencing inventory decisions worldwide.
Counterpoint
If memory shortages ease sooner, PC demand could rebound, offering a buying opportunity on the dip.
Key entities
- CompanyIntel Corporation
Chipmaker providing guidance on PC market outlook.
- CompanyDell Technologies
PC OEM experiencing a 9.5% pre‑market decline.
- CompanyHP Inc.
PC OEM down about 7% pre‑market.
