Shares of Dell (DELL) and HP Inc. (HPQ) jumped after a report suggested that chipmaker Nvidia (NVDA) could be planning a major acquisition that might change the PC industry. According to SemiAccurate, Nvidia has been in talks for more than a year to buy a “large company,” although no specific name was mentioned. Because of this, investors quickly turned their attention to major PC makers like Dell and HP.
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New trading tool for NVDA bearsAccording to Gartner, HP holds about a 19% global market share, second only to Lenovo (LNVGF) at nearly 27%, while Dell has around 17%. Due to their size, they are among the most likely companies to be involved if Nvidia wants to expand further into hardware. It is worth noting that Nvidia is already heavily investing in AI and has spent about $70 billion on partners and customers in the fiscal year ending in January to support AI growth.
At the same time, Dell is directly benefiting from this trend through its AI server business, which uses Nvidia chips and is expected to generate about $50 billion in revenue by Fiscal 2027. Because of this existing relationship, any potential deal could have a bigger impact across the industry. Following the report, Dell shares rose as much as 7.6% before pulling back slightly, while HP climbed as much as 6.3%.
Which PC Stock Is the Better Buy?
Turning to Wall Street, out of the two PC stocks mentioned above, analysts think that DELL stock has more room to fall than HPQ. In fact, DELL’s price target of $177.69 per share implies 5.3% downside versus HPQ’s 2.3% downside risk.
