Dell, HP impact from China ban to be limited, says Citi

Citi maintains Buy ratings on Dell Technologies (DELL) and HP Inc. (HPQ) after the Financial Times reported China has implemented new guidelines that the government will phase out the use of U.S. microprocessors, notably from Intel (INTC) and AMD (AMD). China has been backing government and state-owned enterprises to replace foreign branded PCs with local PCs since 2022, the analyst tells investors in a research note. Given Dell’s and HP’s China PC revenue contribution is 5%-7% in total including government and enterprises, the risk is “fairly limited,” Citi says.