HP warns of slowing PC demand in 2027...stock falls by over 3%

▲ HP/AI generated image

The stock price of HP, a leading information technology hardware company, showed weakness amid projections of a decline in global personal computer market shipments.

According to financial media outlet Benzinga on September 23 (local time), HP (HP Inc., HPQ) disclosed in a regulatory filing a preliminary planning assumption that global personal computer shipments could decrease by a mid-single-digit percentage in 2027. This assumption aligns with forecasts from external market research firms. The company emphasized that it is still in the planning stages for fiscal year 2027 and is not providing formal financial guidance.

HP explained that future performance forecasts could change as market conditions in the second half of 2026 remain fluid. Previously, during the third-quarter earnings announcement on August 26, management stated that it was too early to specify shipment forecasts for fiscal year 2027. This latest disclosure has rekindled investor caution regarding the recovery of demand for information technology devices heading into 2027.

Despite the stock price decline, the long-term upward trendline remains valid in terms of technical indicators. The stock is trading 8.3% above its 50-day simple moving average of $29.46 and 36.5% above its 200-day simple moving average of $23.38. However, it is trading 1% below its 20-day simple moving average of $32.22, and the Relative Strength Index (RSI) is 50.95, indicating a neutral trend after cooling down from an overheated phase.

Market experts are focusing on the $32 level as a short-term resistance and the $27 level as a key support during corrections. In analysts' consensus, HP is rated "Hold" with an average target price of $25, and the recovery of shipments in the second half of 2026 is cited as a key variable determining the stock's future direction.

[Key Article Summary]

-HP disclosed a preliminary planning assumption that global personal computer shipments could decrease by a mid-single-digit percentage in 2027.

-Although the company clarified that this is not an official performance forecast due to fluid market conditions in the second half, concerns about slowing demand led to a 3.11% drop in its stock price.

-Technically, the stock remains above its 50-day and 200-day moving averages, maintaining a long-term trend, with the $27 and $32 levels identified as key turning points.

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