HP Jumps 7% as Lenovo's AI Boom Lifts PC Makers

This article first appeared on GuruFocus.

Shares of personal computer maker HP Inc. (HPQ, Financials) rose almost 7% after solid quarterly results from Lenovo offered investors further reason to remain confident on AI hardware and PCs.Lenovo posted quarterly revenue of $26.94 billion, up 43% from a year ago and well beyond estimates. Revenue connected to AI grew 60% to $9.3 billion.The AI server pipeline also hit $54 billion, illustrating how swiftly demand is growing beyond traditional PCs. That strength carried over to U.S. hardware names, with HP up 6.9 percent.HP has momentum with its own push into AI-PCs. Machines with AI on board accounted for 44% of shipments in the last quarter, and the business expects that number to continue growing.Investors can learn from Lenovo's performance that AI investing is not merely a benefit for chipmakers and data centers. It's also starting to stimulate demand in the broader PC and enterprise hardware industry.