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HP Inc. HPQ shares have gained 11.4% in the past year, underperforming the Zacks Computer - Micro Computers industry and Zacks Computer and Technology sector and the S&P 500 index’s return of 18.1%, 27% and 24.4%, respectively. Although HP has underperformed its industry and the broader tech sector, its persistent efforts on product innovation and differentiation are enabling it to adapt to changing trends.
For instance, HPQ is set to capitalize on the latest artificial intelligence (AI) wave. Per a report by Gartner, AI-based laptops and personal computers shipment will experience year-over-year growth of 165.5% in 2025. HPQ has broadened its product portfolio by introducing AI-powered personal computers and laptops, offering advanced tools to consumers to fully harness the potential of AI.
HP’s AI Portfolio Drives Growth
Throughout the past year, HPQ has introduced AI-based computing devices like HP OmniBook Ultra Flip 14-inch Next-Gen AI PC, HP EliteBook X 14-inch Next-Gen AI PC, Z by HP Gen AI Lab, HP OmniBook X AI PC, HP EliteBook Ultra AI PC, HP OmniBook Ultra laptop and HP OmniStudio PC.
HPQ’s continuous AI-based product launches led its AI PC units to contribute to more than 15% of HPQ’s PC shipments. A past report by Canalys suggests that HP has the largest market share of AI PC in the Windows ecosystem.
HPQ 1 Year Price Performance Chart
Image Source: Zacks Investment Research
To maintain its leadership in the AI-computing space, HPQ began 2025 with the launch of the OMEN Max 16 Laptop integrated with OMEN AI technology and AI-driven one-click performance optimization technology. The company also introduced the HP EliteBook X G1i 14-inch Notebook Next-Gen AI PC and HP EliteBook X Flip G1i 14-inch business notebook Next-Gen AI PC.
HPQ has also upgraded its Printer business with the integration of AI. In 2024, HPQ launched HP Print AI, the first-of-its-kind intelligent print technology that uses AI to improve the printing experiences of people at home. HP has ventured beyond the integration of AI in its 2D printing products.
To enhance the experience for users of HP 3D printers, HPQ has partnered with Fabrex to provide its customers with an AI-driven platform that streamlines build preparation, order management and tracking.
Rising Competition in the AI Space
The rapidly expanding AI market presents unique challenges, such as the influx of numerous companies flooding the market with their AI products. HP faces stiff competition from other companies, including Lenovo LNVGY and Dell Technologies DELL, which are also launching AI-based products. In the printing space, HPQ faces competitive pressure from Canon CAJPY.