HP has lowered its fiscal-year expectations as rising memory chip prices continue to pressure profit margins. The computer and printer manufacturer faces mounting costs for the components essential to its product lineup, forcing the company to revise its financial projections downward.

Memory chip prices have surged in recent months due to supply chain constraints and strong demand across the technology sector. For HP, which relies heavily on these components for both personal computers and printers, the increased costs represent a significant headwind. The company joins a growing list of tech manufacturers grappling with higher input costs that threaten to erode profitability.

Industry analysts note that HP's revised outlook reflects broader challenges in the semiconductor market. While the company has attempted to offset some of these costs through pricing adjustments, the scale of the price increases in memory chips has made it difficult to fully protect margins. HP's situation underscores the vulnerability of hardware manufacturers to volatile component markets, particularly as the global economy navigates ongoing supply chain disruptions.