Intel warns of memory shortage, Dell shares tumble 11% as PC demand slows
Intel's alert about limited memory and rising prices has pushed Dell, HP, Hewlett Packard Enterprise and Super Micro shares lower, while Dell's AI backlog may cushion the impact.
Intel warned on its October 29 earnings call that rising memory prices and limited availability are curbing PC demand, prompting original equipment manufacturers to tighten inventory. The company said the situation is likely to continue until memory markets normalize.
Dell Technologies' stock fell 11% in afternoon trading, reaching $421.74 after closing at $475.51 the day before. The decline follows the broader sell-off in hardware stocks and reflects concerns over weaker PC sales and higher component costs, although Dell remains up 239% year-to-date after reporting record AI orders worth $60.9 billion and an AI backlog of $95 billion.
HP Inc. dropped 9% to $28.99, its biggest decline among the group, as the firm’s Personal Systems segment is heavily exposed to the PC market. HP previously reported a 16% fall in PC shipments and cited rising memory and storage costs as a risk factor.
Hewlett Packard Enterprise fell 7% to $54.70. While the company focuses on enterprise hardware, higher memory prices affect its server business, which posted a 35.3% year-over-year revenue increase in the third quarter of fiscal 2026.
Super Micro Computer also slipped 7% to $32.10. The pure-play AI server maker noted a bearish options-volume signal ahead of its earnings report scheduled for November 3.
Analysts note that hardware makers operate on thin margins, making them vulnerable to component-price spikes. Dell’s future performance may depend on whether AI-server demand can offset the slowdown in PC sales and the ongoing memory shortage.