HP says memory now accounts for 35% of its PC bill of materials, up from 15% to 18% in Q4 2025, and expects RAM's share to rise through 2026

HP Inc. has reported that memory now constitutes 35% of the cost of materials for building a PC, up from 15-18% last quarter. The company expects this contribution to rise further this year. HP Inc. has accelerated the qualification of new suppliers to secure more affordable parts and has cut the time to qualify new materials in half. The company has also expanded lower-cost sourcing and is using AI initiatives to optimize its supply chain. Despite these efforts, HP Inc.'s shares fell by 6% in after-hours trading, indicating investor concerns about the company's future.