icon
icon
icon
icon
$300 Off
$300 Off

News /

Articles /

HPQ's AI PC Surge: Goldman Sachs Raises Price Target Amid Strong Print Performance

Eli GrantSaturday, Nov 30, 2024 6:05 pm ET
4min read


HP Inc. (HPQ) shares have been on the rise thanks to the company's robust print performance and promising AI PC growth prospects. Goldman Sachs has recently raised its price target on HPQ, reflecting the analysts' optimism in the company's ability to navigate market challenges and capitalize on emerging opportunities. This article delves into the factors driving HPQ's growth and the role of AI PCs in shaping its future.

HPQ's strong print performance has been a significant driver of its recent success. The company's print segment has seen positive growth, with margins reaching 19.6% in the fourth quarter of 2024. This strong performance is attributed to cost discipline, favorable business mix, and improved supply sales. HPQ anticipates that print operating margins will remain in the higher end of the 16% to 19% range in fiscal 2025, indicating the segment's resilience and sustainability.



In addition to its strong print performance, HPQ is poised for growth in its Personal Systems (PS) segment, driven by the increasing adoption of AI-enabled PCs. Goldman Sachs analysts have raised their price target on HPQ, citing the company's promising AI PC growth prospects and robust print segment performance. In fiscal 2025, HPQ expects mid-single-digit growth in the PS segment, with AI PCs comprising 20% of shipments.

AI PCs are expected to play a significant role in driving HPQ's revenue growth in the coming years. The growth of AI PCs is supported by pent-up demand and Windows 11 refresh cycles. Moreover, enterprise adoption of AI PCs is projected to boost PC demand, further benefiting HPQ.

ACHR, AISP, ALUR, APLT, APVO...Market Cap


However, HPQ faces challenges in implementing and scaling AI PC technology. One key challenge is ensuring the seamless integration of AI capabilities into existing PC hardware and software ecosystems. This involves developing AI-specific components, optimizing AI algorithms for various use cases, and ensuring compatibility with current and future AI standards. Additionally, HPQ must address potential performance bottlenecks and power consumption issues that may arise from incorporating AI functionalities into its devices.

Another challenge is the development of user-friendly AI interfaces that are intuitive and accessible to a broad range of users. HPQ must ensure that its AI PCs can be easily used by both technically savvy users and those with limited computer literacy. This involves creating AI features that are easy to understand and use, while also providing robust support and training resources for users.

In conclusion, HP Inc. (HPQ) is well-positioned for growth thanks to its strong print performance and promising AI PC growth prospects. The company's ability to navigate potential tariff escalations and AI PC adoption challenges is bolstered by its supply chain resilience and strategic investments in cost discipline. As HPQ continues to execute its growth strategy, investors can expect the company to capitalize on emerging opportunities and maintain its competitive edge in the dynamic technology landscape.
Comments

Add a public comment...
Post
User avatar and name identifying the post author
InevitableSwan7
12/01
$APD has a significant event coming up on December 05: the Goldman Sachs Industrials & Materials Conference. Options with an expiration date of December 20 that cover this event have an implied move of ±3.7%. Check out the details here: https://tinyurl.com/23er6zbt
0
Reply
User avatar and name identifying the post author
INVESTOR PILLIA
12/01

A friend of mine referred me to  financial adviser Karla Ellison, sometime ago and we got to talking about investment and money. I started investing with $130k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit I just bought my second home 2 weeks ago and care for my family. All thanks to KARLA ELLISON Dm on Facebook

0
Reply
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App