The struggling PC market sent HP Inc. (HPQ) and Dell Technologies (DELL) down by 11.36% and 12.25% respectively. What happened?
HP issued light guidance for the PC business. The firm is not expecting sales to gain momentum soon enough. Still, analysts are more optimistic. They are forecasting an acceleration in sales in the next few quarters. Margins will improve as HP and Dell cut costs and achieve favorable pricing.
In the second half of 2025, Microsoft (MSFT) will end support for Windows 10. This will force corporations who are still using Intel (INTC) chips that are older than 8th generation to upgrade. The upgrade cycle should lift hardware sales. It will also increase licensing revenue for Microsoft. Additionally, people will buy AI PCs to take advantage of CoPilot AI on the Windows system.
While investors are bearish on Dell’s PC business, the server market should thrive. In Q3/2025, Dell shipped $2.9 billion of AI servers and has $4.5 billion in backlog. Traction for enterprise customers is growing.
In the software industry, Autodesk (ADSK) fell by 8.6% on November 26. After earning $6.00 in annualized GAAP income per share, the stock is too expensive at $290. At a non-GAAP P/E of 38.4 times and 65 times on a GAAP measure, ADSK stock is not attractive.