HP Inc.’s HPQ shares have surged 24.1% year-to-date, outpacing the Computer Mini computers industry’s growth of 19.7%. This remarkable growth showcases investors’ faith in HPQ’s introduction of cutting-edge products in the personal computers market along with advancements in the artificial intelligence realm.
HPQ recently integrated Galileo into its AI model development platform, Z by HP AI studio. This integration enables users to rectify biases and inaccuracies in outputs by addressing hallucinations and drifts in the models. By doing so, data scientists and AI creators can deploy products rapidly and securely using HP AI studio.
Furthermore, HPQ has launched two new products, namely the HP OmniBook Ultra and HP OmniStudio X Desktop PC. The OmniBook presents a 14-inch form factor with processors and graphics courtesy of Advanced Micro Devices, featuring AMD’s Ryzen AI 300 processor with integrated AMD Radeon 800M graphics. Developed in collaboration with AMD, the Ultrabook boasts speeds of up to 55 TOPS of NPU performance, a high-resolution AI-enabled 9-megapixel camera, and Wolf Security features.
HP Inc. Price and Consensus
HP Inc. price-consensus-chart | HP Inc. Quote
HPQ’s OmniBook Ultra will receive a complimentary update to Copilot+ from Microsoft and comprises up to 90% recycled metal and 5% ocean-bound plastics for a reduced environmental footprint.
The HP OmniStudio X Desktop is offered in 27-inch and 31.5-inch all-in-one desktop variants, equipped with Intel Core Ultra 7 processors and an optional NVIDIA GeForce RTX 4050 GPU with 6 GB GDDR6 dedicated for NVIDIA. These high-end processors facilitate seamless work on video editing and AI projects, along with a 4K screen, a 5-megapixel camera, Poly Studio, and Adaptive audio for an immersive user experience. The desktop is certified with EPEAT Gold with Climate+ and ENERGY STAR.
HPQ Benefits From Product Portfolio
The increasing global interest in generative AI-enabled PCs could bolster the company’s position in the PC market. HPQ, in its second-quarter fiscal 2024 earnings call, hinted at AI PCs as a potential growth catalyst next year, projecting that 40-60% of all PCs could be AI-enabled in the next three years.
Earlier this year, HPQ expanded its AI PC lineup, which augurs well for its future growth trajectory. The company’s consistent product launches in the Printing segment, where it is among the largest sellers of printers, are also expected to support its resilience in the current volatile macroeconomic landscape.
Near-Term Challenges
HP faces challenges from the uncertain macroeconomic environment and persistent inflationary pressures. Soft demand for HPQ’s PC and printing offerings due to changing customer purchase behavior and caution in response to macroeconomic conditions adds to the company’s hurdles.
Additionally, heightened competition in the PC and printer segments from rivals like Lenovo, Dell, Acer, Apple, Toshiba Corporation, Xerox Corporation, and Seiko Epson Corporation further strains HP’s market position.
Conclusion
Despite near-term headwinds stemming from macroeconomic uncertainties and shifting demand trends, HP is strategically positioning itself for long-term success by introducing AI-powered PCs that offer a competitive edge in the evolving PC market.
The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) company’s fiscal 2024 earnings has been revised upwards by 3 cents to $3.45 per share in the last 60 days.