Dell Technologies (NYSE:DELL) and HP (NYSE:HPQ) are both warning that the ongoing semiconductor shortage could impact their ability to meet demand for personal computers and laptops this year.
Dell and HP each reported quarterly revenue that beat Wall Street estimates after markets closed on Thursday (May 27), as customers continued to shop for personal computers.
However, shares of Dell fell 1%, while those of HP dropped as much as 6% immediately after they warned of the ongoing impact of the global semiconductor shortage.
Dell warned that rising costs to purchase semiconductor chips would hit its operating income in the current second quarter by the low to mid-single digits and lead to slightly lower revenue on a sequential basis.
HP, which ranks second among global computer vendors, said the chip shortages would limit its ability to supply personal computing devices and printers through the end of the year.
Still, the companies, which are leaders in the personal computing industry, said they were bullish on the overall market, expecting the surge in demand for laptops needed by people working and going to school remotely to continue.
Global shipments of PCs, the industry's term for laptop and desktop computers, grew 55.2% during the first quarter of this year, according to data from research firm IDC.
Dell said its revenue from its client solutions group, which includes desktops, notebooks and tablets, rose 20% to $13.31 billion U.S. in the first quarter. HP's PC-related sales rose 27% in the first quarter, while notebook sales surged 47% from the same period a year earlier.
Dell's revenue rose 12% to $24.49 billion U.S. in the first quarter, beating estimates of $23.40 billion U.S., according to Refinitiv data, while HP posted overall revenue of $15.9 billion U.S., above the $15 billion U.S. estimated by analysts.
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