Computer hardware stocks fell in pre-market trading on Thursday, with Dell Technologies Inc. (DELL.US) dropping more than 4% and HP Inc (HPQ.US) declining over 3%. Analysts noted that the cost of mainstream PC memory and storage increased by approximately 40% to 70% between the first and fourth quarters of 2025, with these cost increases being passed on to consumers. The core issue lies in production capacity allocation: memory manufacturers are prioritizing higher-margin server-grade DRAM and HBM (high-bandwidth memory) required for AI infrastructure, resulting in insufficient production capacity for standard DDR memory used in laptops and desktops. PC manufacturers have warned that 2026 may present significant challenges for consumers: the problem is not a shortage of CPUs or GPUs, but rather an industry-wide memory shortage crisis. This situation is expected to drive up bill-of-materials costs and force manufacturers to make difficult configuration choices. For major original equipment manufacturers like Dell and Lenovo, the options are either to absorb higher costs and raise product prices, or to maintain current price points while reducing product specifications. According to Jitesh Ubrani, Research Manager at IDC, if PC shipments decline by 9% in 2026, total shipments would drop to approximately 260 million units, slightly below the roughly 263.3 million units in 2024 and close to 2023 levels—which he described as "one of the worst years in PC history."