Core Insights - HP indicated that memory price pressures will significantly manifest in the second half of fiscal year 2026, specifically from April to October 2026 [1] - Currently, memory accounts for 15-18% of the total cost of a typical PC product [1] - HP has a substantial inventory of memory and has secured long-term supply contracts with upstream companies, which will help mitigate the impact of memory price increases during the first half of fiscal year 2026 [1] - The company plans to implement a broad yet targeted pricing strategy for its products, analyzing specific cases to determine pricing for each region and product category [1] - The penetration rate of AI PCs in HP's shipments reached over 30% in the fourth quarter of fiscal year 2025, with expectations to increase to 40-50% in fiscal year 2026 [1]

Market Overview - The stock market is experiencing a rebound, with the Dow rising by approximately 0.33% (about 160 points), the S&P 500 up by about 0.33%, and the Nasdaq increasing by about 0.25% ahead of the Thanksgiving holiday [1] - Large-cap tech stocks are showing mixed performance, with Alphabet down by 1% and Nvidia rising, indicating sector volatility [1] - Utilities and energy sectors are performing well, while consumer discretionary and communications services are lagging, with healthcare being the best performer this quarter [1] Federal Reserve and Economic Outlook - Markets are pricing in a potential rate cut in December, with Kevin Hasset emerging as a front-runner to replace current Fed Chair Jerome Powell [1][2] - Economic growth is expected to pick up in 2026, with GDP growth projected to be slightly below trend this year but improving due to tax season benefits for mid to lower-end consumers [1][2] - AI spending is estimated to contribute about 1.5% to GDP, accounting for approximately 25% of current GDP growth, indicating its importance but not suggesting a bubble [1][2] Consumer Spending and Holiday Shopping - A new survey indicates that 41% of consumers plan to do most of their holiday shopping between Thanksgiving and Cyber Monday, with 29% of holiday budgets already spent by November 1st [2][3] - Despite a cautious consumer sentiment, actual spending is anticipated to increase by 3-4% year-over-year during the holiday season, driven by discounts and promotions [2][3] - The spending behavior varies by income cohort, with lower to middle-income consumers trading down and seeking discounts, while higher-income consumers continue to spend significantly [2][3] Retail Sector Insights - Retailers like Abercrombie, Steve Madden, and TJX are expected to perform well during the holiday season due to product innovation and effective management of tariffs [4][5] - The retail market is experiencing a bifurcation, with lower-income consumers being more cautious while higher-income consumers are maintaining spending levels [4][5] - Gen Z and baby boomers are projected to be significant spenders, with Gen Z showing a shift towards in-store shopping despite initial plans to cut back [4][5] Technology Sector Developments - Alphabet's stock is nearing a $4 trillion market cap following the successful launch of its Gemini 3 AI model, outperforming other tech stocks [6] - Meta is reportedly in talks with Google to spend billions on Google's chips and data centers, indicating strong demand for AI-related technologies [6] - Analysts suggest that the market is currently favoring Google, but there may be better investment opportunities in companies like Meta and Oracle, which have been oversold [6]

Welcome back. Shares of Dell are jumping today after the company posted a strong forecast thanks to AI servers. Our Christina Psonis joins us now with the street reaction.Christina, what it tells us about the overall demand out there. >> Well, it seems like Wall Street right now is somewhat split on Dell's results. And I say that because first, management acknowledged the memory cost challenges, but says they're better prepared this cycle.Their argument is that Dell will have better memory supply than compe ...

Dell - Dell's stock is experiencing positive momentum due to an optimistic AI-powered outlook, despite being an underperformer year-to-date [2][3] - The company reported adjusted EPS of $2.59, exceeding expectations, while revenue was slightly below expectations at approximately $27 billion, compared to the anticipated $27.27 billion [2] - Dell raised its AI server shipment target to $25 billion and expects fourth-quarter revenue of $31.5 billion, significantly above Wall Street's consensus [3][4] - The data center segment saw a surge in demand for Nvidia-powered AI systems, contributing to the positive outlook [3] - Dell has resumed returning $1.6 billion to shareholders through buybacks and dividends, indicating financial strength [4] - Full-year revenue guidance has been boosted to $111.7 billion, up from $17 billion, reflecting strong momentum in AI infrastructure [4][5] HPQ - HPQ's stock is facing weakness following its latest results, primarily due to a cautious outlook rather than past performance [6] - The company reported adjusted EPS of $0.93, slightly beating expectations, with revenue of $14.6 billion, surpassing the forecast of $14.4 billion [6] - HPQ's cautious outlook is attributed to rising costs from new US trade rules and a significant increase in memory prices [7] - The company plans to reduce its workforce by 4,000 to 6,000 employees due to these rising costs and a soft printing market, where printer revenue fell by 4% [7][8] - The PC division showed some strength with an 8% rise, partly due to the transition from Windows 10 prompting consumer upgrades [8] Deere - Deere's shares are under pressure due to a weak outlook, despite a solid recent quarter with adjusted EPS of $3.93 and revenue of $12.39 billion, both beating expectations [10] - Concerns about future performance stem from tariffs and a weak agricultural cycle, leading to reduced large equipment purchases by farmers [11] - Although net income fell in double digits, management is optimistic about nearing the bottom of the farm equipment cycle, suggesting potential recovery ahead [12]

This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Dive Brief:  HP will cut between 4,000 and 6,000 jobs by 2028 due to recent cost headwinds as it invests in AI-enabled initiatives, the company said in a press release and earnings call for its fourth quarter and full fiscal year 2025, which ended Oct. 31. The company reported net revenues of $55.3 billion for its 2025 fiscal year.  The workforce reductions comes as the co ...

HP Inc. (HPQ) is doubling down on artificial intelligence — and betting it will replace thousands of jobs in the process. "There are many things that today we have to do using people ... that in the future AI will do better and will do faster," CEO Enrique Lores told Yahoo Finance (video above). It's not just an HP issue, he added, but an "industrywide" shift companies must embrace to stay competitive. That transformation is reshaping HP. The company on Tuesday unveiled a sweeping AI initiative tied to ...

Core Viewpoint - Huawei launched two new HarmonyOS 6 laptops, the MateBook Pro in Dawn Pink and the MateBook Fold in Extraordinary Master Red, which are designed to generate professional reports such as business plans through a proprietary database developed with ecosystem partners [1] Product Launch - The new laptops are equipped with HarmonyOS 6, showcasing Huawei's commitment to integrating its software with hardware solutions [1] - The MateBook Pro and MateBook Fold are part of Huawei's strategy to enhance productivity tools for users [1]

Core Viewpoint - The company is experiencing a successful wave of PC upgrades driven by Windows 11, with stable profit margins reflecting supply chain resilience. Non-GAAP net profit estimates for FY2026-2028 have been raised, indicating strong growth potential [1]. Group 1: Financial Performance - In FY2026Q2, the company reported revenue of $20.452 billion, a year-on-year increase of 14.6%, and a non-GAAP net profit of $512 million, up 25.2%, with a net profit margin of 2.5%, an increase of 0.2 percentage points year-on-year [1]. - The IDG segment generated revenue of $15.11 billion, growing 11.8% year-on-year, with Lenovo's PC shipment growth outpacing the industry at 17.3% compared to 9.4% [1]. - The ISG segment achieved revenue of $4.087 billion, a 23.7% year-on-year increase, with strong demand for AI servers, although it reported an operating profit margin of -2.7%, indicating a narrowing loss rate [1]. - The SSG segment's revenue reached $2.556 billion, up 18.1% year-on-year, with deferred revenue of $3.6 billion, reflecting a 17% increase and enhancing business predictability [1]. Group 2: Supply Chain Resilience - The company demonstrates strong supply chain resilience, effectively managing price fluctuations in components due to its significant purchasing power and superior bargaining capabilities compared to peers [2]. - The stable performance of the IDG segment and the narrowing loss rate in the ISG segment serve as evidence of the company's ability to adapt to cost impacts through product and customer structure adjustments [2].

Core Viewpoint - Company maintains a "Buy" rating for Lenovo Group (00992) due to better-than-expected performance, with revenue and adjusted net profit growing by 14.58% and 25.18% year-on-year respectively, driven by accelerated penetration of AIPC and strong AI server business [1] Performance Overview - For FY25/26 Q2, the company reported revenue of $20.452 billion, up 14.58% year-on-year, and adjusted net profit of $512 million, up 25.18% year-on-year, with net profit significantly exceeding expectations [1] IDG Smart Device Business Group - The PC business performed well, with the IDG segment achieving revenue of $15.107 billion, a year-on-year increase of 11.79%. PC revenue was approximately $11.1 billion, growing 17.58% year-on-year, surpassing IDC's reported global PC shipment growth of 10.32% for Q3 [2] - AIPC's global shipment accounted for 33% of total PC shipments, with a 30% share in the domestic market for notebooks, reflecting a 3 percentage point increase from the previous quarter [2] ISG Infrastructure Solutions - The ISG segment reported revenue of $4.087 billion for FY25/26 Q2, a year-on-year increase of 23.65%. AI servers showed double-digit growth, with strong order reserves, and revenue from liquid cooling technology surged by 154% year-on-year [3] Gross Margin and Supply Chain Management - The gross margin for FY25/26 Q2 was 15.39%, up 0.66 percentage points quarter-on-quarter, indicating effective progress in the AI server business transformation. The company has a robust supply chain and has developed comprehensive strategies to address component price increases [4] Profit Forecast - The company maintains its previous profit forecast, expecting revenues of $79.49 billion, $91.55 billion, and $105.24 billion for FY25/26 to FY27/28, with net profits of $1.67 billion, $2.03 billion, and $2.43 billion respectively, supported by its leading position in the PC market and strong growth in AI servers [5]

Investment Rating - The report maintains a "Buy" rating for Lenovo Group (00992) [1] Core Insights - Lenovo Group's FY25/26 Q2 financial results exceeded expectations, with revenue of $20.452 billion, a year-on-year increase of 14.58%, and an adjusted net profit of $512 million, up 25.18% [6] - The Intelligent Devices Group (IDG) showed strong performance in the PC business, with revenue of $15.107 billion, a year-on-year growth of 11.79%, and PC revenue of approximately $11.1 billion, growing 17.58% [6] - The Infrastructure Solutions Group (ISG) reported revenue of $4.087 billion, a year-on-year increase of 23.65%, with AI server sales experiencing double-digit growth [6] - The gross margin slightly improved to 15.39%, indicating effective management of rising storage costs [6] - The report forecasts revenue for FY25/26 to FY27/28 at $79.485 billion, $91.551 billion, and $105.244 billion, respectively, with net profits projected at $1.672 billion, $2.029 billion, and $2.433 billion [6] Financial Data and Profit Forecast - Revenue projections for FY23/24 to FY27/28 are as follows: - FY23/24: $56.864 billion - FY24/25: $69.077 billion - FY25/26E: $79.485 billion - FY26/27E: $91.551 billion - FY27/28E: $105.244 billion [5] - Net profit projections for the same period are: - FY23/24: $1.011 billion - FY24/25: $1.384 billion - FY25/26E: $1.672 billion - FY26/27E: $2.029 billion - FY27/28E: $2.433 billion [5] - Earnings per share are expected to grow from $0.08 in FY23/24 to $0.20 in FY27/28 [5]