HP (HPQ): Assessing Valuation After Launch of New AI-Powered Devices and Productivity Platforms

HP (NYSE:HPQ) just revealed an extensive range of new AI-powered devices and platforms aimed at reinventing how people work and collaborate. The announcement covers everything from portable monitors to upgraded AI workstations and smarter workflow management tools.

See our latest analysis for HP.

The rollout of HP’s new AI-driven tools comes on the heels of several notable moves, including a strong third-quarter earnings beat and a leadership transition in its Personal Systems division. Despite these efforts, HP’s share price remains under pressure as annual total shareholder return is slightly negative, though longer-term returns have built modestly. This mix of strategic launches and executive change means momentum could shift if HP’s innovations spark stronger revenue growth.

If the surge of AI-powered devices has you wondering what else the tech sector is reimagining, consider exploring See the full list for free..

With HP’s shares underperforming this year despite new AI launches and executive changes, the real challenge is clear: is the current price a hidden bargain, or has the market already accounted for future AI-fueled growth?

Most Popular Narrative: 5.3% Undervalued

Compared to HP’s last close price of $26.48, the widely followed narrative suggests a fair value slightly higher. This indicates a potential disconnect between consensus valuations and current trading levels, setting the stage for a closer look at the factors driving this more optimistic outlook.

Expansion and momentum in recurring digital and managed service models (such as Device-as-a-Service and consumer print subscriptions) are increasing the share of predictable, higher-margin revenue streams. This supports future earnings and operational stability. Persistent structural cost reduction initiatives, including manufacturing diversification outside China, AI-enabled automation, and a $2B annualized savings target, are poised to deliver sustainable improvements in net margins and bottom-line earnings resilience.

Read the complete narrative.

Want to know what’s fueling this higher valuation? Analysts are focusing on a new mix of higher-margin business, ongoing cost reductions, and strategic pivots. The most notable change is in the bold forecasts that could alter revenue and profit expectations. Discover which assumptions are turning these market shifts into tomorrow’s value drivers.

Result: Fair Value of $27.97 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent declines in HP's core print segment and fierce price competition could undermine the optimistic outlook if market conditions worsen further.

Find out about the key risks to this HP narrative.

Build Your Own HP Narrative

If you see the story differently or want to dig into the details on your own, you can shape your own HP thesis in just a few minutes. Do it your way.

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.

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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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