10 Best Stocks to Buy According to Billionaire David Einhorn

4. HP Inc. (NYSE:HPQ)

Greenlight Capital’s Stake Value: $126.65 Million

Number of Hedge Fund Holders: 42

HP Inc. (NYSE:HPQ) is a tech company offering personal computers, digital devices, and printing products. It provides desktops, notebooks, workstations, mobility devices, and software. Billionaire David Einhorn believes HP is a top stock pick, leveraging AI to boost PC sales. He predicts “high-teens growth” for HP and finds its stock, trading at around 10x earnings, very reasonable. Einhorn sees HP as a potential AI play in the tech market.

HP Inc.’s (NYSE:HPQ) PC portfolio is now equipped with artificial intelligence features that help analyze private files, create content and conduct various tasks. The integration is part of the company’s push to give people a reason to upgrade their PCs. The integration has come with the launch of one of the most potent next-generation AI business notebooks, Elitebook.

While IDC reports that generative AI PC sales are poised to grow by 234% by 2027, HPQ is one of the companies well poised to benefit from its new line of AI-powered PCs. HP Inc. (NYSE:HPQ) is already seeing strong demand for its hardware, going by a 1.7% increase in revenue in its fiscal fourth quarter to $14.1 billion. HP’s Personal Systems division, which includes PCs, brought in revenue of $9.6 billion, up 2%, while its Printing division delivered revenue of $4.5 billion, 1% higher.

Greenlight Capital stated the following regarding HP Inc. (NYSE:HPQ) in its Q2 2024 investor letter:

“In addition to gold, we had four material winners in our long portfolio this quarter. HP Inc. (NYSE:HPQ) jumped from $30.22 to $35.02. After seven quarters of declines, PC sales turned marginally positive during the quarter. The industry appears to be in the early stages of an upcycle, perhaps to be enhanced by recently launched AI-enabled PCs that are expected to ramp up over the next several quarters.”