On Thursday, computer hardware stocks experienced a downturn, with HP Inc (HPQ.US) falling more than 5% and Dell Technologies (DELL.US) dropping nearly 4%.
Morgan Stanley highlighted in a Wednesday report that IT hardware companies will face increasingly severe cyclical challenges by 2026. Analysts expressed particular caution toward hardware original equipment manufacturers like Dell Technologies and HP Inc, citing their significant exposure to memory chip risks.
The report noted that rising memory chip costs in 2026 could lead to substantial price increases for both enterprise and consumer market products. This scenario may heighten demand elasticity risks and pressure hardware procurement budgets downward.
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