Wall Street’s main indexes tumbled on Friday as AI anxiety hammered technology stocks, with the Nasdaq and the S&P 500 on track for their steepest monthly drop since March 2025, while hotter-than-expected inflation data also hit sentiment.Technology shares faced selling pressure this month as concerns over high valuations and the uncertain payoff from Big Tech’s massive AI spending grew.In midday trading, the Dow Jones Industrial Average plunged nearly 500 points, or 1%, to 49,011. The S&P 500 lost 0.6%, an ...

Investors also cheered the PC maker's plans for a 20% hike to cash ​dividends and an additional $10 billion share repurchase program.Dell's shares surged to a three-month high. Trading at $142.31, it ​was on track to mark its biggest one-day jump in nearly two years.Data center equipment makers such as Dell said it expects AI server revenue to grow ​103% to ​about $50 billion in fiscal 2027.Live EventsAt least seven Wall Street brokerages ⁠raised price targets on the stock, with J.P.Morgan expecting it ​to ...

Core Viewpoint - Dell Technologies forecasts that its AI server revenue will double by fiscal 2027, reflecting a significant increase in demand for AI infrastructure [1] Group 1: Financial Performance - Dell's AI server revenue is expected to grow by 103% to approximately $50 billion in fiscal 2027 [1] - The company plans to increase cash dividends by 20% and initiate a $10 billion share repurchase program [1] - Dell's shares rose 11% in premarket trading, reaching $135.17, the highest level in over two months [1] Group 2: Market Position and Competition - Dell is positioned as a leader in AI compute for Tier 2 Cloud and Enterprises, which enhances its ability to manage operating margins and earnings [1] - Competitors like HP and Lenovo are struggling with market share, particularly in the context of rising memory chip costs [1] - Dell's shares have significantly outperformed those of HP and Lenovo over the past year [1] Group 3: Industry Trends - The data center equipment sector is expected to see at least $630 billion in spending this year, driven by the rapid expansion of AI [1] - Market researcher TrendForce has revised its first-quarter 2026 Dynamic Random Access Memory price growth rate to between 90% and 95% [1]

China's Lenovo warns of PC shipment pressure from memory shortage | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]Lenovo Chairman and CEO Yang Yuanqing speaks at the opening ceremony of the World Internet Conference (WIC) in Wuzhen, Zhejiang province, China, November 23, 2020. REUTERS/Aly Song/File Photo [Purchase Licensing Rights, opens new tab]BEIJING, Feb 12 (Reuters) - China's Lenovo Group [(0992.HK), opens new tab] warned on T ...

China's Lenovo Q3 profit falls 21%, beats estimates on strong revenue | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]An employee gestures next to a Lenovo logo at Lenovo Tech World in Beijing, China November 15, 2019. REUTERS/Jason Lee [Purchase Licensing Rights, opens new tab]BEIJING, Feb 12 (Reuters) - China's Lenovo Group [(0992.HK), opens new tab] reported on Thursday a 21% drop in third-quarter profit, but beat analyst expect ...

Core Insights - The global PC shipments are projected to grow by 9.6% year-over-year in Q4 2025, reaching 76.4 million units, marking a strong end to a turbulent year for the PC market [1][5] - Factors influencing the PC market include the end of Windows 10 support driving upgrade demand, uncertainties around tariff policies leading to preemptive inventory stocking, and a tightening memory supply impacting pricing and availability [1][2][4] Market Overview - The PC market is expected to experience significant volatility in the coming year due to rapid changes in the memory market, with potential price increases and adjustments in average memory configurations to extend existing inventory usage [2][4] - The average selling price (ASP) of PCs is anticipated to rise in 2026 as manufacturers prioritize mid-to-high-end product supply to cope with increasing component costs, particularly memory prices [4] Company Performance - Lenovo led the market in Q4 2025 with shipments of 19.3 million units, capturing 25.3% market share, reflecting a 14.4% increase from Q4 2024 [5] - HP Inc. and Dell Technologies followed with shipments of 15.4 million (20.1% market share, up 12.1%) and 11.7 million (15.3% market share, up 18.2%) units respectively [5] - Apple and ASUS reported shipments of 7.1 million (9.3% market share, up 0.2%) and 5.4 million (7.1% market share, up 10.9%) units respectively [5] Yearly Shipment Data - Total PC shipments for 2025 reached 284.7 million units, an 8.1% increase from 263.3 million units in 2024 [6] - Lenovo maintained a leading position with 70.8 million units shipped in 2025, holding 24.9% of the market, while HP Inc. and Dell Technologies shipped 57.5 million (20.2% market share) and 41.1 million (14.4% market share) units respectively [6]

Core Viewpoint - Lenovo is frequently impacted by various macroeconomic concerns, which affects its stock performance [1] Group 1 - Lenovo is categorized as a stock that is often hindered by ongoing macroeconomic issues [1]

Core Viewpoint - The demand for AI hardware is causing a significant shortage of traditional storage chips, leading major PC manufacturers to plan price increases of at least 20% for their 2026 models due to rising component costs [2][3]. Group 1: Supply Chain and Pricing - The shortage of storage is attributed to major manufacturers like Samsung, SK Hynix, and Micron shifting production capacity towards high-bandwidth memory (HBM), which is crucial for AI accelerators, thereby constricting the supply of mainstream PC components such as DDR5 and LPDDR5 DRAM and SSDs [3][6]. - Wholesale prices for wafers have surged since late September, with reports indicating that storage prices have nearly doubled every ten days in early Q4 [3]. - Major PC brands are expected to face a supply bottleneck, with procurement managers estimating that next year's storage availability may only meet about half of the demand [3][5]. Group 2: Inventory Management and Market Strategy - To mitigate the impact of rising costs and supply constraints, PC brands are planning significant price hikes for next year's models while accelerating inventory clearance and phasing out older products [4]. - The tightening supply has been evident since early this year, as major storage suppliers have begun to phase out DDR4 production in favor of more profitable AI storage [4]. Group 3: Market Outlook and Forecasts - The storage supply bottleneck is negatively impacting industry forecasts, with IDC and Gartner both revising down their PC shipment predictions for 2026 [5]. - If the storage shortage persists, actual production may fall short of expectations, with some models potentially facing production cuts or temporary halts [5]. - The imbalance in production capacity between HBM and traditional PC DRAM is expected to continue into next year, making 2026 one of the most expensive product cycles in recent years if major suppliers do not expand mainstream storage capacity [6].

Core Insights - Dell Technologies (DELL) shares surged nearly 6% after the company raised its outlook, driven by increased demand from AI [1][4] - The company reported record AI server orders of $12.3 billion and total orders of $30 billion year to date, indicating strong momentum in the AI sector [1][2] - Dell's full-year revenue forecast was increased to between $111.2 billion and $112.2 billion, up from a previous range of $105 billion to $109 billion, with adjusted earnings per share projected at $9.92 [1][2] Financial Performance - Dell posted adjusted earnings per share (EPS) of $2.59 for the third quarter, reflecting a 17% increase year-over-year and exceeding analysts' expectations [2] - The company's revenue for the third quarter was reported at $27 billion, which was slightly below market expectations [2] Market Implications - The significant stock gains for Dell suggest renewed confidence in the AI market and highlight Dell's position as a key beneficiary of the ongoing AI boom [2]

Market Performance - Major U.S. equities indexes, including the Dow, S&P 500, and Nasdaq, rose close to 1% ahead of the Thanksgiving holiday, driven by renewed optimism about a potential Federal Reserve rate cut next month [1] - Dell Technologies was highlighted as one of the best-performing stocks in the S&P 500, with shares increasing nearly 7% after the company raised its outlook and reported soaring demand for its artificial intelligence products [2] Company-Specific Developments - Robinhood Markets saw its shares soar nearly 10% as it expanded into prediction markets by acquiring LedgerX in partnership with Susquehanna International Group [2] - Petco Health and Wellness shares jumped 18% following a surprise profit report and an optimistic outlook due to its transformation efforts [3] - Workday was the worst performer in the S&P 500, with shares down 9% amid concerns regarding subscription revenue [3] - Deere & Company shares fell 5% after the company issued a weak forecast and warned of challenging market conditions [3] - HP's shares declined 2% as it announced a cost-cutting plan involving layoffs and provided a weak outlook due to increased costs from U.S. tariffs [4]