TLDR
- HP stock hit a 52-week high of $29.55, up 8.9% in a single session after announcing new NVIDIA RTX Spark-powered PCs
- Q2 FY2026 results beat expectations: EPS of $0.86 vs. forecast $0.71; revenue $14.4B vs. forecast $13.99B
- Personal Systems revenue grew 13% year-over-year to $10.2B, with AI PCs now 44% of total shipments
- HP projects AI PCs will make up 60–70% of its shipment mix next year
- Goldman Sachs kept a Sell rating with a $19.00 price target, citing margin pressure concerns
HP Inc. stock jumped 8.9% on June 2, 2026, after the company announced a new lineup of PCs and notebooks powered by NVIDIA’s RTX Spark platform, targeting AI developers, creators, and gamers. The stock hit a fresh 52-week high of $29.55 during the session.
The move came hot on the heels of a strong earnings report just days earlier, which had already sent the stock up 10.1%.
For Q2 FY2026, HP posted revenue of $14.4 billion, beating the $13.99 billion analyst estimate. Adjusted EPS came in at $0.86, well above the $0.71 forecast.
The quarter wasn’t without headwinds — PC unit volumes fell 7% year-over-year. But higher pricing and a shift toward premium products helped offset that decline.
HP’s Personal Systems division carried a lot of the weight, with revenue up 13% to $10.2 billion. AI PCs now make up 44% of total shipments, up from the prior quarter.
The new NVIDIA-powered lineup includes OmniBook laptops and a compact desktop. The product announcement added fuel to an already bullish setup following earnings.
Options market activity backed up the enthusiasm. Call option volumes were unusually high on the day, suggesting traders were positioning for further upside.
AI PCs Driving the Growth Story
HP isn’t just riding the AI wave — it’s making a direct bet on it. The company said AI PCs could represent 60–70% of its total shipment mix next year, a sharp jump from the current 44%.
The company also reported double-digit revenue growth in advanced compute solutions and workforce solutions, alongside gains in premium PC market share.
HP has paid dividends for 56 consecutive years. The current yield sits at 4.09%, and InvestingPro’s Fair Value estimates suggest the stock may still have room to run.
Wall Street Not Fully Convinced
Not everyone is on board. Goldman Sachs reiterated a Sell rating on HPQ with a price target of $19.00 — a big discount to where the stock is currently trading. The firm cited margin pressure as its main concern.
That’s a notable gap between Goldman’s target and the current price, and it’s worth keeping in mind given the stock’s sharp run-up.
HP is up 32.6% year-to-date and is trading near its 52-week high. Despite that gain, investors who bought $1,000 worth of HP stock five years ago would have just $982.22 today.
Goldman Sachs maintained its $19.00 price target following the Q2 earnings beat, with margin pressure remaining the central concern.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Be the first to comment