We recently compiled a list of the Top 10 AI News Updates This Weekend. In this article, we are going to take a look at where HP Inc. (NYSE:HPQ) stands against the other AI stocks.
According to JP Morgan, the S&P will propel to new heights this New Year, and artificial intelligence is one of the reasons why. Besides AI, Strategist Dubravko Lakos-Bujas pointed to a resilient economy and the possibility of easier industry regulations as reasons for the boost, setting 6,500 as his 2025 target for the broad market index.
The U.S. will remain “the global growth engine with the business cycle in expansion, a healthy labor market, broadening of AI-related capital spending, and prospect of stronger capital market and deal activity”.
– Lakos-Bujas.
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US equities have already enjoyed a strong 2024, up 26% year to date due to enthusiasm around AI and a resilient economy. A tighter labor market, record wealth, and “potentially lower energy prices” are also reasons to celebrate. Investors have been happy about Donald Trump’s win as well, noted Lakos-Bujas, fueling their expectations of lower taxes and deregulation across industries.
“Heightened geopolitical uncertainty and the evolving policy agenda are introducing unusual complexity to the outlook, but opportunities are likely to outweigh risks. The benefit of deregulation and a more business-friendly environment are likely underestimated along with potential for unlocking productivity gains and capital deployment”.
In other news, artificial intelligence is stepping in to keep the Thanksgiving cheer alive, making sure holiday staples stay abundant and affordable for years to come.
“Cranberry production is challenging … [and] growers are really concerned about heat stress events”.
– Dr. Jeffrey Neyhart
Artificial intelligence is helping by speeding up the process of identifying heat-resistant varieties for cranberries. Researchers like Dr. Neyhart are using AI to save years of work and improve crop resilience in the face of climate change.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A laptop, showing off the companys sleek notebook computers and workstations.
HP Inc. (NYSE:HPQ)
Number of Hedge Fund Holders: 42
HP Inc. (NYSE:HPQ) is a technology company that specializes in personal computing and printing solutions.
On November 27, Goldman Sachs analyst Michael Ng reiterated a “Neutral” rating on HP Inc. (NYSE:HPQ) with a price target of $38, up from $35. The company delivered fiscal fourth-quarter 2024 EPS of $0.93, aligning with firm estimates. The Print segment’s performance was also strong and offset the miss in the Personal Systems (PS) division. Besides these factors, the firm expects mid-single-digit growth in PS for fiscal 2025, driven by Windows 10 end-of-life, a refreshed PC installed base, as well as the rise of AI PCs, which are anticipated to comprise 20% of shipments. HP anticipates stronger performance in the second half of fiscal 2025 due to an acceleration in PC demand, driven by the commercial segment, premium consumer systems, and AI PCs.
Overall HPQ ranks 8th on our list of the trending AI stocks this weekend. While we acknowledge the potential of HPQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HPQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
