Author argues HPQ is undervalued because it remains profitable despite memory price pressure from AI, and expects it to rebound when the AI bubble pops, while doubling down on HPQ.
HPQ — LONG The author argues HPQ is being unfairly hammered by AI-driven memory price inflation even though it still generates strong EPS and ROC. The mechanism is that AI demand is pushing memory prices up, compressing HPQ's margins and stock price, but the underlying business remains highly profitable. The catalyst is an AI bubble pop, which would relieve memory price pressure and let HPQ 'pop' back up. The author states they are doubling down on HPQ; the main risk implied is continued AI-driven memory cost pressure.
HPQ, even with the memory squeeze, is making plenty of money. EPS and ROC are both high. It's just the AI pushing up memory prices pushing HPQ down.
This Reddit post, published February 01, 2026, features u/bailewen discussing HPQ. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/bailewen · Tickers: HPQ