2024-06-02 01:38:34 ET
Summary
- HP surged after reporting strong Q2 results and citing tailwinds from AI, pushing year-to-date gains above 20%.
- The company believes that AI demand and integration with Microsoft's AI Copilot can drive a PC refresh super-cycle.
- HP's wide product lineup, high-margin printing business, aggressive shareholder returns programs, and consistent cash flow make it an attractive investment option.
- The stock still trades at an attractive ~10x P/E multiple.
For many years, HP Inc. ( HPQ ), the hardware segment of the former consolidated HP that has since split into HP Inc. and HP Enterprise ( HPE ), has been a forgotten stock. Investors shunned the company for its slow growth, its lagging results in PCs, and the secular decline of the printing business, which is HP's cash cow....
Read the full article on Seeking Alpha
For further details see:
HP: All Eyes On An AI PC Supercycle