HP (HPQ) Valuation Check as New AI Biologics Partnership Expands Its Life Sciences Footprint

HP (HPQ) just teamed up with mAbxience on an AI powered digital twin platform for biologics manufacturing, a move that quietly nudges HP into higher growth life sciences alongside its core PC and printing business.

See our latest analysis for HP.

The partnership lands at a tricky moment for HP, with a 1 month share price return of 6.82 percent but a year to date share price return of negative 24.76 percent and a 1 year total shareholder return of negative 21.47 percent. This hints that investors are only starting to reprice its longer term diversification story.

If this kind of move into AI enabled platforms interests you, it is worth scanning other potential beneficiaries among high growth tech and AI stocks for fresh ideas beyond HP.

With HP trading below analyst targets yet showing only modest growth, the real question now is simple: are investors overlooking a quietly diversifying cash machine or correctly pricing in the next leg of growth?

Most Popular Narrative: 5.6% Undervalued

With HP closing at $24.43 versus an estimated fair value near the mid $25s, the prevailing narrative sees modest upside driven by disciplined execution.

Persistent structural cost reduction initiatives, including manufacturing diversification outside China, AI enabled automation, and a $2B annualized savings target, are set to drive sustainable improvements in net margins and bottom line earnings resilience. HP's focus on responsible innovation and sustainability exemplified by significant recycled content in devices and advances toward net zero aligns with growing enterprise and consumer preference for eco friendly technology, strengthening competitive positioning and supporting revenue and margin growth over the long term.

Read the complete narrative.

Want to see the math behind that upside call? The narrative quietly leans on slow but steady revenue gains, firmer margins, and a valuation multiple that undercuts typical tech peers. Curious how those moving parts add up to that fair value gap?

Result: Fair Value of $25.88 (UNDERVALUED)

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

However, persistent print weakness and a harsher memory cost supercycle could erode margins faster than expected and narrow that apparent valuation cushion.

Find out about the key risks to this HP narrative.

Build Your Own HP Narrative

If you see the story differently or would rather dive into the numbers yourself, you can shape a custom view in just minutes: Do it your way

A great starting point for your HP research is our analysis highlighting 2 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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