HP Inc's stock plummeted 5.01% in pre-market trading on Thursday, reflecting investor concerns over mounting challenges in the personal computer hardware sector.

The decline comes as the industry faces a significant memory shortage crisis, with memory manufacturers prioritizing production of higher-margin server-grade DRAM and HBM (high-bandwidth memory) for AI infrastructure over standard DDR memory used in laptops and desktops. Analysts note that the cost of mainstream PC memory and storage increased by approximately 40% to 70% between the first and fourth quarters of 2025, with these cost increases being passed on to consumers.

PC manufacturers have warned that 2026 may present significant challenges, as the industry-wide memory shortage is expected to drive up bill-of-materials costs and force manufacturers to make difficult configuration choices. Additionally, Bofa Global Research cut its price objective for HP Inc to $18 from $20, adding further pressure on the stock.