Dell and HP fall as Micron forecast stirs cost fears

Shares of Dell Technologies DELL.N down 3.2% and HP Inc HPQ.N losing 3.5% on Thur, missing out on tech rally sparked by an outsized profit forecast from Micron Technology MU.O

While strong AI-related demand for MU's memory chips lifted many tech stocks and helped push the S&P 500 tech sector .SPLRCT up 1.5%, the forecast deepened existing worries about rising costs and a scarcity of components for computer and server makers

HP CEO Enrique Lores warned last month that higher memory chip prices were forcing the co to reduce memory configurations in the devices it sells and also increase product prices

In contrast to HP and Dell, both Seagate Technology STX.O and Western Digital WDC.O jumped >6% following MU's results, reflecting strong AI-related demand for their storage devices