15 AI Stocks That Are On Sale

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2. HP Inc. (NYSE:HPQ)

Number of Hedge Fund Holders: 41

Expected Earnings Growth: 3%

P/E Ratio: 10.4

HP Inc. (NYSE:HPQ) is a tech hardware and storage company based in Palo Alto, California. It provides personal computing and other digital access devices.

In the third quarter, HP Inc. (NYSE:HPQ) reported revenue growth for the first time in nine quarters, with revenue rising by 2% year-over-year. While this seems to be a nominal figure, many loyal investors expect the company to only go further up from here. This is especially the case considering the fact that HP Inc. (NYSE:HPQ) is currently charging ahead in the AI PC category, with its next-generation AI PCs becoming more popular among knowledge workers and data scientists.

HP Inc. (NYSE:HPQ) seems to be doubling down on the mobility and AI optimization of its newer PC models. In July, the company introduced its new premium model, powered by the latest AMD processor, which has since been heralded as the most powerful AI PC in the industry. In the third quarter, HP Inc. (NYSE:HPQ) took its AI operations even further by becoming the first tech player to build generative AI into its workstation solution.

The company expects personal systems revenue for the fourth quarter to increase sequentially, with the commercial segment also exhibiting continued strength. While the printers segment seems to be lagging for HP Inc. (NYSE:HPQ) this year, many investors are more focused on the potential of HP AI PCs and what they mean for the company’s profitability in the long term instead.

A total of 41 hedge funds were long HP Inc. (NYSE:HPQ) in the second quarter, with a total stake value of $654.9 million.

Greenlight Capital mentioned HP Inc. (NYSE:HPQ) in its second-quarter 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.”

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