PC Comments From Dell and HP Back Our Play With This Chip Stock

In our earlier Alerts today, we discussed Dell’s (DELL) comments about its AI server business, which led us to snap up more shares of Arista Networks (ANET) Wednesday morning.

Now let’s turn and examine what Dell had to say about its PC business as well as what HP (HPQ) had to say on that front. We’ll also sprinkle in what HP had to say about its leveraging AI to drive internal cost reductions. The former supports Qualcomm’s (QCOM) diversification efforts, while the latter is a proof point for further AI adoption in the enterprise.

Dell and HP on PC Demand

Dell’s PC business, which is housed in its Client Solutions Group (CSG) segment, saw its revenue rise 3% in the October quarter, and it is expected to be up low-to-mid single digits in the current one. While Dell’s focus was on how AI is driving its business, management shared that the ongoing Windows 11 refresh should be a tailwind for the CSG business in the coming quarters.

More specifically, it said that the PC install base is around 1.5 billion units, with about one-third or 500 million units capable of running Windows 11 that haven’t been upgraded. Dell also finds that around 500 million units are 4+ years old and can’t run Windows 11. With total industry PC shipments totaling around 76 million units in Q3 2025, those figures point to a multi-year upgrade cycle ahead.

During its earnings call last night, HP offered more color on the PC market, sharing the following:

"With 40% of the installed base still on Windows 10 at the end of Q4, the Windows 11 refresh will remain a tailwind for the PC market into 2026. And demand for AI PCs continues to accelerate, now representing more than 30% of our shipments this quarter."

HP also noted that in keeping with the seasonal pattern, it sees slower PC volumes ahead with stronger volumes in H2 2026, which is typical. However, HP does see the mix of PCs continuing to tilt further toward AI PCs throughout the coming quarters.

To us, that’s nice confirmation for Qualcomm’s diversification strategy.

Qualcomm Shares

Regarding QCOM shares, they have retreated to their 100-day moving average, a move that makes our October 27 opportunistic trimming at $190.55 look pretty good if we do say so ourselves. Now we’re keeping an eye on that support level, but also watching the MACD setup closely to determine a potential next move in the shares.

As we noted earlier today, Qualcomm management will be presenting at the UBS Global Technology and AI Conference on December 2, which could be a potential catalyst for the shares and any potential action we might take.

HP on AI and Cost Cutting

HP also shared something very interesting to us on the AI front, which is how it plans to internally use AI to improve its cost structure. This is what Enrique Lores, HP’s CEO, said on last night’s earnings call:

"… we see a significant opportunity to embed AI into HP to accelerate product innovation, improve customer satisfaction, and boost productivity. We have launched a company-wide program led by an executive reporting directly to me. And we have a line of sight to drive approximately $1 billion of gross run rate savings over 3 years across product development, customer service and support, and many of our operational processes. This will result in workforce reductions of 4,000 to 6,000 people over the next years."

Management went on to clarify it targets of ~$300 million in those savings by the end of fiscal 2026.

We’ve talked before about how Meta (META) and others are using AI to streamline their operations, improve margins, and help fund ongoing investments. What HP did was call out a specific and large figure, and odds are we are going to see more companies discuss similar efforts in January and early February when they report their December-quarter results and break ground on what they see ahead in 2026.

As that discussion unfolds, it will also serve as a barometer for AI adoption and usage, figures that we’ll continue to track to determine where we are in the “AI trade.” We’ll have more about that to say on Friday.

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At the time of publication, TheStreet Pro Portfolio was long ANET, QCOM and META.