Computer hardware stocks decline before the market opens; Dell Technologies (( DELL.US) drops more than 4%

On Thursday, computer hardware stocks declined before the market opened, with Dell Technologies (DELL.US) down over 4% and HP (HPQ.US) down more than 3%.

Analysts say that from the first to the fourth quarter of 2025, mainstream personal computer memory and storage costs increased by approximately 40% to 70%, and this increase has been passed on to consumers. The core issue lies in capacity allocation: memory manufacturers are fully focused on pursuing higher profit margins on server-grade DRAM and HBM (High Bandwidth Memory) needed for AI infrastructure, leading to insufficient capacity for regular DDR memory used in laptops and desktops.

PC manufacturers warn that 2026 could be challenging for consumers: the problem is not a shortage of CPUs (central processing units) or GPUs (graphics processing units), but an industry facing a memory shortage crisis—this will drive up bill of materials costs and force manufacturers to make awkward configuration choices. For large OEMs like Dell and Lenovo, they must either pay higher costs and raise product prices or keep prices unchanged but reduce product specifications.

IDC research manager Jitesh Ubrani said that if PC shipments decline by 9% in 2026, total shipments will fall to about 260 million units, slightly below the approximately 263.3 million units in 2024, and close to 2023 levels—“that would be one of the worst years in PC history.”