HP Inc.'s stock fell by over 6% after the company provided a cautious outlook for its full-year earnings despite reporting solid first-quarter results. The tempered expectations are primarily due to soaring memory chip costs, which HP plans to offset by raising computer prices and seeking lower-cost suppliers. The company is also navigating a sudden CEO transition and ongoing workforce reductions related to AI adoption.
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HP's stock falls after management tempers full-year expectations amid soaring memory costs
HP Inc.'s stock fell by over 6% after the company provided a cautious outlook for its full-year earnings despite reporting solid first-quarter results. The tempered expectations are primarily due to soaring memory chip costs, which HP plans to offset by raising computer prices and seeking lower-cost suppliers. The company is also navigating a sudden CEO transition and ongoing workforce reductions related to AI adoption.