Dell, HP rise as Lenovo jumps 20%; Cisco falls 7% premarket

Hardware stocks were diverging before Thursday's open, with Dell Technologies indicated up 4% and HP Inc. up 6% after Lenovo reported quarterly revenue growth of 43%, its fastest pace in five years, alongside server turnover that doubled on an AI infrastructure boom. Lenovo shares rose roughly 20% to a record high, and the result strengthened the view that AI-driven server demand and premium PC demand can outweigh the memory cost inflation that has pressured the PC sector. Cisco Systems moved the other way, falling 7% premarket despite posting fiscal fourth-quarter revenue of $17.25 billion, up 18%, adjusted EPS of $1.22, and guidance above consensus. The selloff appeared tied to positioning after a nearly 61% gain this year through Wednesday's close, as well as services revenue that was flat year over year at $3.79 billion and slightly below FactSet-polled expectations of $3.81 billion. Traders are now watching whether Dell and HP hold their gains at the open and whether Cisco's decline spreads to Arista Networks and other networking stocks.

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