What Happened?
Shares of personal computing and printing company HP (NYSE: HPQ) jumped 8.9% in the afternoon session after the company announced a new line of PCs and notebooks powered by NVIDIA RTX Spark, aimed at AI developers, creators, and gamers.
This news built on positive momentum from the previous week, when HP reported strong second-quarter results that beat revenue and earnings expectations. The company's Personal Systems revenue grew 13% year-over-year, driven by increasing demand for its AI-powered personal computers, which now account for 44% of total shipments.
The announcement of the new NVIDIA-powered product line, which includes OmniBook laptops and a compact desktop, signaled to investors that HP is capitalizing on the AI trend. This bullish sentiment was reflected in the options market, where an unusually high volume of call options traded, indicating investors anticipate further gains.
Is now the time to buy HP? Access our full analysis report here, it’s free.
What Is The Market Telling Us
HP’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 10.1% on the news that the company reported better-than-expected second-quarter fiscal 2026 results and provided a strong forecast, fueled by demand for its AI-powered personal computers.
HP's revenue for the quarter rose 9% year-over-year to $14.4 billion, while adjusted earnings per share reached 86 cents, both surpassing analyst expectations. The growth was largely driven by its Personal Systems division, which is responsible for PC sales and saw revenues climb 13% to $10.2 billion. The company noted that shipments of AI PCs now account for 44% of its total, a significant increase from the previous quarter.
Looking ahead, HP projected that AI PCs could make up 60% to 70% of its shipment mix next year. Adding to investor optimism, the company's earnings guidance for the current quarter also exceeded analyst projections, signaling confidence in its continued performance.
HP is up 32.6% since the beginning of the year, and at $29.33 per share, it is trading close to its 52-week high of $29.35 from September 2025. Despite the year-to-date gain, investors who bought $1,000 worth of HP’s shares 5 years ago would now be looking at only $982.22.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
