AMD Dell and HP stocks fall sharply as analysts
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AMD, Dell and HP stocks fall sharply as analysts expect the PC market to weaken

Analysts share market participants’ concerns about the inevitability of a correction in the PC market, which has shown impressive growth rates for two consecutive years. Statements by experts from Barclays and Morgan Stanley about the expected decline in demand in the PC segment in 2023 caused a price decline not only for AMD, but also for HP Inc. and Dell, among the top three computer manufacturers.

    Image source: AMD

Image source: AMD

Barclays representative in the evening explainedthat AMD’s top three businesses, PC, gaming and Xilinx-related assets, have been growing faster than the overall market for the past few quarters, and this state of affairs cannot last forever. In 2023, AMD’s expansion in these segments will most likely pick up a more modest pace. Barclays cut its forecast for AMD shares to $115 from $148, and the shares ended yesterday’s trading session down 8.29%.

This year, however, according to Barclays, AMD will be able to grow sales by 31% and regain part of Intel’s position, and next year difficulties may begin. Going forward, the company’s business momentum will largely depend on the success of Intel and ARM processors in 2024 and 2025.

Morgan Stanley experts also mentioned the risk of worsening business conditions for computer maker HP Inc. and Dell. Macroeconomic uncertainty and rising inflation will lower the cost of purchasing computer equipment for corporate customers. After two years of continuous growth and a market that is functioning in deficit, demand will approach the normal trend. While Morgan Stanley previously forecast PC sales to grow 4% this year, analysts are now looking for a likely 6% decline. But the server segment should show the stability of sales volume and revenue this year.

Amid such statements, Dell’s stock price fell 7.6% to $50.19, while HP Inc. fell 6.5% to $36.30. With the dynamics of AMD’s stock price, the current correction doesn’t change the fact that the rate is up 39% over the past 12 months, outperforming many stock indices by a multiple. HP Inc. and Dell stocks showed comparable momentum to the rest of the stock market in this regard.

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