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Is HP (HPQ) Undervalued On Its AI Workstation Alliance With Infinity.inc?

Simply Wall St · 2d ago

AI alliance puts HP stock in focus

HP (HPQ) is back on investor screens after Infinity.inc used its Auto Research tools to double concurrent AI workloads on HP’s new ZGX Fury workstations without changing the underlying NVIDIA GB300 hardware.

HP’s share price has gained 52.08% year to date, and the 90 day share price return of 18.91% points to building momentum, while a 26.63% total shareholder return over one year and 45.51% over three years frames this AI workstation news within an already solid run.

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After HP’s sharp rerating on the ZGX Fury story, the price now sits above the average analyst target, while a DCF view still flags roughly 33% upside. Which lens does fair value actually line up with?

Most Popular Narrative: 23% Overvalued

HP closed at $33.64 compared with a widely followed fair value estimate of $27.31, so the narrative currently frames the stock as pricing in more than the modeled cash flows using a 9.47% discount rate.

The current valuation suggests HP is priced as if AI PCs, services, and cost savings will more than offset print and PC headwinds. This bearish narrative views that as too optimistic for the share price.

See why 62 investors see HP as 23% overvalued.

Result: Fair Value of $27.31 (OVERVALUED)

Still, if HP’s AI PC mix and higher value print and services lines continue to support earnings and cash generation, this bearish valuation story could be challenged.

Find out about the key risks to this HP narrative.

Another look at HP valuation

While the narrative fair value of $27.31 casts HP as 23% overvalued, the preferred P/E lens tells a different story. HP trades on 12.4x earnings compared with 18.9x for the Global Tech industry and a fair ratio of 25.6x. This implies investors are paying a discount rather than a premium. That gap raises a simple question: is this a cushion against disappointment or a signal that expectations are still catching up?

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:HPQ P/E Ratio as at Oct 2026
NYSE:HPQ P/E Ratio as at Oct 2026

Next Steps

Mixed messages on HP valuation and AI momentum can pull you in both directions, so move quickly to check the data yourself and decide where you stand, then weigh up the 4 key rewards and 2 important warning signs.

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