HP Inc's stock surged 5.03% during the pre-market session on Monday, marking a significant upward movement for the technology company.
The sharp rise appears to be driven primarily by the company's better-than-expected fiscal second-quarter results. HP reported adjusted earnings per share of $0.86, significantly exceeding the consensus estimate of $0.71. Revenue grew 9.2% year-over-year to $14.4 billion, also surpassing analyst expectations. A key highlight from the quarter was the strong penetration of AI PCs, with approximately one-third of the company's PC shipments featuring AI capabilities.
Adding to the positive sentiment, HP announced new devices and solutions designed for AI development, including PCs powered by NVIDIA's RTX Spark platform. The company previewed upcoming notebooks and desktops built for the next wave of Windows PC experiences, reinforcing its position in the growing AI PC market. Following the earnings report, several analysts raised their price targets on the stock, citing the strong performance and AI PC momentum.