HP (HPQ) BofA Securities 2024 Global Technology Conference summary

Market trends and outlook

• Commercial PC segment remains strong, with growth expected in the second half due to refresh cycles, Windows 10 end of life, and AI-driven device innovation.

• Consumer segment is more cautious short-term, but AI-enabled devices are expected to drive long-term growth.

• Hybrid work is a secular trend, increasing demand for productivity, connectivity, and security in devices.

• PC market is projected to grow at mid-single digits over the next few years, with AI and refresh cycles as key drivers.

• Shift toward notebooks over desktops continues, with notebooks having faster refresh cycles.

Business strategy and segment focus

• Company mix is about 70% commercial and 30% consumer, with a strong position in commercial notebooks.

• Growth areas include hybrid systems, services, and gaming, which are expanding faster than core businesses.

• Chromebooks are important in U.S. education but represent a small portion of overall revenue.

• Focus is on higher value categories and delivering total solutions, not just devices.

AI PCs and innovation

• AI PCs are defined by their ability to run models locally using NPUs, enabling new use cases and productivity gains.

• Running AI locally offers faster, more cost-effective, and more secure operations compared to cloud-based solutions.

• AI PCs are expected to represent 40%-60% of shipments in three years, with ASPs rising 5%-10%.

• Innovations in AI, security, and battery life are key differentiators.