HP Inc's stock soared 9.48% during intraday trading on Friday, marking a significant upward movement for the technology hardware company.

The surge was primarily driven by the company's stronger-than-expected fiscal second-quarter earnings report. HP reported adjusted earnings per share of $0.86, significantly exceeding the Wall Street consensus estimate of $0.71, while revenue also beat forecasts. A key highlight from the report was the robust penetration of AI-capable personal computers, which accounted for approximately one-third of the company's PC shipments, demonstrating solid momentum in this growing segment.

Furthermore, the rally was bolstered by multiple analyst price target upgrades, including from Citigroup and JPMorgan, reflecting improved sentiment. Broader optimism in the AI hardware sector, fueled by peer Dell Technologies' stellar results showing a 757% surge in AI server revenue, also contributed to positive investor sentiment towards HP. However, company management cautioned about rising input costs, particularly for memory chips, which are expected to pressure operating margins going forward.