What happened?
Shares of personal computing and printing company HP (NYSE:HPQ) fell 8.8% in the morning session after Intel warned of a prolonged slump in personal computer demand and forecast steep declines in global shipments.
In prepared remarks accompanying its earnings results, Intel Chief Executive Officer Lip-Bu Tan projected global personal computer shipments to decline 12% in 2026 and another 10% in 2027, driven by component shortages and increasing memory prices. Tan explained that the market correction accelerated over the previous two months as original equipment manufacturing partners reduced inventories, warning that the slump could persist through the first half of 2027 until component pricing stabilizes.
Notably, preliminary industry figures released from research firms IDC and Counterpoint Research indicated third-quarter global PC shipments fell between 20.1% and 21% year-over-year, which included a 25% plunge for Dell. The severe contraction highlights vulnerability to cyclical downturns in hardware demand and rising component expenses.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy HP? Access our full analysis report here, it’s free.
What is the market telling us
HP’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
HP is up 27.1% since the beginning of the year, but at $28.12 per share, it is still trading 20.8% below its 52-week high of $35.48 from September 2026. Despite the year-to-date gain, investors who bought $1,000 worth of HP’s shares 5 years ago would now be looking at only $899.71.
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