HPQ surged 15% after Lenovo’s AI-driven earnings beat raised expectations for HP’s upcoming quarterly report.
HP Inc. (HPQ) shares jumped 15% last Friday, driven by Lenovo’s stronger-than-expected quarterly results. Investors interpreted Lenovo’s revenue growth and 40% AI-related earnings as a positive signal for HPQ, which competes in the same PC and enterprise markets.
Lenovo reported its fastest revenue growth in five years, with AI products accounting for nearly 40% of quarterly revenue. The shift in perception—from a traditional PC maker to an AI hardware player—triggered a reassessment of HPQ’s potential beyond its dividend yield.
JPMorgan adjusted its price target for HPQ, reflecting cautious optimism about demand trends. The move suggests Wall Street may be re-evaluating HPQ’s growth prospects ahead of its earnings release.