{"id":70408,"date":"2026-05-22T01:23:10","date_gmt":"2026-05-22T05:23:10","guid":{"rendered":"https:\/\/tvdelmarva.com\/wp\/computer-giant-reports-record-sales-as-chip-shortage-drives-price-increases\/"},"modified":"2026-05-22T01:23:10","modified_gmt":"2026-05-22T05:23:10","slug":"computer-giant-reports-record-sales-as-chip-shortage-drives-price-increases","status":"publish","type":"post","link":"https:\/\/tvdelmarva.com\/wp\/computer-giant-reports-record-sales-as-chip-shortage-drives-price-increases\/","title":{"rendered":"Computer Giant Reports Record Sales as Chip Shortage Drives Price Increases"},"content":{"rendered":"\n
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The world’s biggest computer manufacturer announced quarterly earnings that far surpassed analyst predictions on Friday, with revenues climbing 27% as customers accelerated PC purchases in anticipation of higher prices due to component shortages.<\/p>

Stock prices for the Chinese technology company jumped 15% on Friday, making it the top performer on the Hang Seng Index.<\/p>

The company’s computer, tablet and mobile device segment – which generates the majority of its income – saw revenues increase 24% during the quarter ending in March, marking the strongest quarterly performance in half a decade.<\/p>

These impressive results follow earlier company warnings about potential disruptions to computer shipments as the technology sector faces an increasingly severe shortage of memory components. The manufacturer has already implemented price increases to offset rising memory costs.<\/p>

“Supply (of memory chips) is in heavy shortage, and the cost is growing faster,” the company’s CEO Yang Yuanqing explained to Reuters on Friday, noting that having a more diverse supplier network – including Chinese manufacturers – helped minimize the disruption.<\/p>

According to regulatory documents filed this month, China’s leading memory chip producer ChangXin Memory Technologies listed the computer maker among its key clients, while reporting revenue growth exceeding 700% in the first quarter due to surging memory chip prices.<\/p>

Memory component costs doubled during the first quarter compared to the previous period and are projected to rise as much as 63% in the current quarter, driven by artificial intelligence data center demand that has reduced supplies available for phones, laptops and vehicles.<\/p>

The technology company reported fourth-quarter revenues of $21.6 billion, significantly exceeding analyst forecasts of $18.7 billion, while its computer shipment growth exceeded overall market performance by almost six percentage points.<\/p>

The corporation is also rapidly expanding into artificial intelligence processing markets, with its AI server order backlog reaching $21 billion.<\/p>

The infrastructure solutions division, which encompasses AI server operations, achieved 37% revenue growth in the fourth quarter, outperforming all other company divisions.<\/p>

Shareholder profits surged 479% to $521 million, well above analyst expectations of $271 million, according to LSEG data.<\/p>

Worldwide computer shipments increased 3.2% in the first quarter of 2026 to 63.3 million units, while the company’s shipments rose 9% to 16.5 million units, capturing a 26% market share, according to Counterpoint Research.<\/p>","protected":false},"excerpt":{"rendered":"

The world’s largest computer manufacturer posted quarterly earnings that exceeded Wall Street predictions by a wide margin, driven by consumers rushing to buy PCs before anticipated price increases. The company’s stock price soared 15% following the announcement of a 27% revenue increase despite ongoing memory chip supply constraints.<\/p>\n","protected":false},"author":4,"featured_media":70407,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[834],"tags":[],"class_list":["post-70408","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/05\/news-1779427390077.jpg?fit=450%2C300&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/pbtNqq-ijC","jetpack-related-posts":[{"id":72824,"url":"https:\/\/tvdelmarva.com\/wp\/hp-surpasses-earnings-expectations-on-strong-ai-computer-sales\/","url_meta":{"origin":70408,"position":0},"title":"HP Surpasses Earnings Expectations on Strong AI Computer Sales","author":"Admin","date":"May 27, 2026","format":false,"excerpt":"Technology company HP exceeded Wall Street profit and revenue projections for the second quarter, fueled by robust sales of artificial intelligence-enabled computers and Windows 11 system upgrades. 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