Analysts Cautious on HP Inc. (HPQ) Amid Rising Memory Costs

HP Inc. (NYSE:HPQ) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 1, Bernstein maintained its Hold rating for the stock with a price target of $30.

The research firm expressed concerns about rising memory prices, which it believes could significantly impact the company’s earnings in fiscal 2026, including a likely 10% reduction in full-year EPS.

According to Bernstein, much of the impact is expected to be felt during the second half of the year, with HP’s inventory on hand and long-term agreements shielding it during the first half.

Tech giants are cautioning of a supply shortage for memory chips in 2026, amid surging demand for expanding AI infrastructure. Memory costs have soared in recent weeks and now account for between 15% to 18% of the cost of an average PC for HP Inc. (NYSE:HPQ), said CEO and President Enrique Lores during the Q4 2025 earnings call on November 25.

While talking to Bloomberg last week, Lores said that his company was bracing for a challenging second half of 2026, where HP could raise prices if required. Moreover, the company was onboarding new suppliers and cutting down on memory configuration in new products to mitigate the impact of these headwinds.

Several research firms since November 26 have lowered the price targets for HP Inc. (NYSE:HPQ), citing rising memory costs and their impact on the company’s financial outlook for 2026.

As of the close of business on December 5, Wall Street analysts have a consensus Hold rating for the stock, with a one-year average share price target of $25.88, which is primarily in line with Friday’s close of $25.91.

HP Inc. (NYSE:HPQ) is a leading provider of personal computers, digital access devices, printers, scanners, and other related technologies. The stock is down 21% year-to-date.

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