Shares of Dell Technologies and HP Inc. fell sharply, each sinking about 13%, after both companies reported disappointing earnings and issued downbeat forecasts, raising concerns over the anticipated recovery of the personal computer (PC) market driven by AI-enabled PCs. Dell reported third-quarter revenue of $24.37 billion, missing estimates by $286 million, and provided a weaker-than-expected fourth-quarter revenue forecast of $24 to $25 billion, below the consensus of $25.6 billion. The company cited delayed PC refresh cycles into 2025 and sluggish PC demand, with PC revenue declining 1%. Dell's Infrastructure Solutions Group revenue rose 34% to $11.4 billion, driven by AI server demand, as the company shipped $2.9 billion of AI servers in the quarter. Dell's AI server backlog reached $4.5 billion. Despite this, Dell's shares fell over 12%, marking their biggest drop since May 31. HP reported revenue of $14.06 billion, slightly beating estimates by $55 million, but forecast first-quarter profit below expectations due to continued weakness in PC demand. HP's CFO Karen Parkhill noted that consumers are holding off on buying AI-enabled PCs. The companies' outlooks cast doubt on a market recovery driven by AI-enabled PCs, leading to a significant sell-off in their shares.