• Earlier this month, HP announced that its AI PC portfolio has expanded significantly, with AI-powered devices now accounting for more than 25% of its total PC shipments despite a slight decrease in overall market share.
• A key insight is that expected demand for AI PCs and the end of Microsoft Windows 10 support are poised to influence broader PC shipment trends in 2025, potentially benefitting HP’s positioning in this fast-evolving sector.
• We will explore what HP’s momentum in growing AI PC revenues means for its investment thesis going forward.

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HP Investment Narrative Recap

Being a shareholder in HP right now means believing in the company’s ability to leverage growth in AI PCs and premium devices to offset challenges in traditional print and hardware segments. The recent news of AI-powered PCs surpassing 25% of HP’s shipments reinforces this catalyst, though it does not meaningfully alter the biggest short-term risk: ongoing print market declines and margin pressures from intense price competition.

Among recent announcements, HP’s recognition for its All-In printer subscription plan stands out. This move to recurring digital service models aligns with broader industry shifts, potentially buffering against cyclical swings and supporting higher-margin revenue, yet competitive pressures in core hardware remain top of mind for investors in light of new AI-focused product momentum.

By contrast, investors should also be aware of persistent long-term pressures in HP’s core Print segment, especially as…

Read the full narrative on HP (it’s free!)

HP’s projections show forecast revenue of $56.8 billion and forecast earnings of $2.9 billion by 2028. This outlook assumes 1.3% annual revenue growth and a $0.3 billion increase in earnings from the current $2.6 billion level.

Uncover how HP’s forecasts yield a $27.97 fair value, in line with its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community range from US$27.97 to US$50.32 per share. While these views differ significantly, many are watching how demand for AI PCs and recurring service models could shape HP’s future growth opportunities.

Explore 6 other fair value estimates on HP – why the stock might be worth as much as 79% more than the current price!

Build Your Own HP Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your HP research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free HP research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate HP’s overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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