Dell Stock: Price Today & Graph Trends
Dell's AI Windfall: HP's Layoffs Reveal a Two-Tier Tech Market
The AI Divide Widens
Dell's recent earnings call painted a rosy picture, with their stock jumping over 3% after hours. The key driver? AI server demand. They've upped their revenue forecast for AI server shipments to $25 billion, a significant bump from the previous $20 billion. Full-year revenue target also got a lift, now sitting at $111.7 billion, up from $107 billion. And they're projecting $9.4 billion in server shipments this quarter. All positive indicators, right? Dell Stock Gains After Posting Mixed Quarter But Strong AI Demand Outlook - Investor's Business Daily
HP, on the other hand, is singing a different tune. They announced layoffs—between 4,000 and 6,000 people over the next two years (that's up to 10% of their workforce, by the way). The promise is savings of at least $1 billion annually by fiscal 2028, but it comes at a cost: $650 million in charges, with $250 million hitting in fiscal 2026. Unsurprisingly, HP's stock slid more than 6% in extended trading. It's a stark contrast.
The headline numbers for HP's Q4 weren't terrible. Earnings per share beat estimates (93 cents versus 92 cents), and revenue also exceeded expectations ($14.64 billion versus $14.48 billion). But the devil's in the details, as always. Their fiscal 2026 Q1 forecast is lukewarm (73 to 81 cents per share, below the 79-cent consensus), and their full-year forecast of $2.90 to $3.20 per share also trails the $3.33 analyst target. They didn't even bother issuing revenue guidance.
Dell is riding the AI wave, particularly as a major manufacturer of server systems featuring Nvidia GPUs. They're catering to the enterprises, government agencies, and "neocloud" providers who are scrambling for AI infrastructure. Dell doesn't rely as heavily on the hyperscalers like Amazon and Google (who often source GPUs directly from Nvidia), which might explain their resilience. HP, meanwhile, is facing headwinds in the PC business, with rising chip costs impacting their bottom line. They’re hoping the end of Windows 10 support will boost sales, but only 60% of their user base has upgraded to Windows 11 so far.
HP's restructuring plan aims to embrace AI automation. The goal? To accelerate product and software development, automate customer support, and streamline internal processes. It's a defensive move, an attempt to adapt to the changing landscape. But will it be enough?
The Tale of Two Tech Giants
Dell's Infrastructure Solutions Group saw server and networking sales jump 37% year-over-year, reaching $10.1 billion, with $5.6 billion specifically from AI servers. Their Client Solutions Group (PCs and laptops) also saw a 3% increase, hitting $12.48 billion, though they missed the Street's forecast of $12.65 billion by a hair. Microsoft's Windows 10 sunset is expected to provide a further boost.
HP's printer sales, however, were down 4% year-over-year. And as of Tuesday's market close, HP's stock is down 27% year-to-date, while Dell is up 7%. (The S&P 500, for context, is up 15%.) These numbers paint a clear picture: one company is thriving in the AI era, while the other is struggling to stay afloat. I've looked at hundreds of these filings, and the stark divergence between these two companies is quite telling.
This isn't just about individual company performance; it's about a fundamental shift in the tech landscape. The AI boom is creating a two-tiered market, where companies that can capitalize on AI infrastructure and solutions are flourishing, while those that are primarily focused on traditional PC and printer businesses are facing challenges. It's akin to the gold rush: some strike gold, while others are left selling shovels – and even the shovel sellers are feeling the pinch as material costs rise.
The question that lingers for HP is this: can they successfully transition to an AI-driven model, or will they continue to be weighed down by their legacy businesses? Their restructuring plan suggests they're trying, but the layoffs and glum forecast raise doubts. And Dell? Can they sustain this growth, or will the AI bubble eventually burst? What happens when the infrastructure build-out plateaus?