PresentationErik WoodringMorgan Stanley, Research Division Good morning, everyone. Thank you for joining us day 1 here of the 2026 Morgan Stanley TMT Conference. My name is Erik Woodring. I lead the hardware research coverage based out in New York. Quickly, for important disclosures, please see the Morgan Stanley research disclosure website at www.morganstanley.com/researchdisclosures. If you have any questions, reach out to your Morgan Stanley sales rep. And then from the HPQ side, today's discussion incl ...

Summary of HP (NYSE:HPQ) 2026 Conference Call Company Overview - **Company**: HP Inc. (HPQ) - **Event**: 2026 Morgan Stanley TMT Conference - **Date**: March 02, 2026 Key Points Financial Performance - **Q1 Performance**: Achieved 7% revenue growth and EPS at the high end of guidance range [7] - **Market Share**: Gained share in key areas such as Personal Systems (PS), high-value segments, and consumer markets [7] - **Print Segment**: Increased share in Big Tank and developed markets, with a focus on supplies [7] Outlook and Guidance - **Revenue Growth**: Expected to moderate in the second half of the year due to supply chain challenges, particularly in memory [8] - **Earnings Per Share (EPS)**: Anticipated to be at the lower end of the annual range due to current market conditions [9] - **Memory Supply**: Addressing supply challenges through a strong mitigation playbook, including securing supply and increasing prices [12] CEO Transition - **Interim CEO**: Bruce Broussard is providing continuity and stability during the CEO search [13] - **Search Criteria**: The board is looking for a leader with experience in managing large global businesses [14] Memory Supply Challenges - **Supply Relationships**: Long-term relationships with major suppliers are being leveraged to ensure memory supply [16] - **Cost Impact**: Memory costs are expected to double sequentially, impacting pricing strategies [18] Personal Systems Business - **Revenue Growth Expectation**: Mid-single digit revenue growth anticipated, despite expected unit declines [19] - **Market Trends**: Industry experts predict a high single-digit to low-teens decline in units for the calendar year [21] - **AI PCs**: 35% of shipments were AI PCs, indicating a growing trend in this segment [29] Print Business Insights - **Print Demand**: Stable usage patterns observed, with potential for growth as businesses return to office settings [41] - **Market Share**: HP maintains a 33.5% share in the print market, focusing on disciplined pricing strategies [47] Strategic Initiatives - **Cost Reduction**: A $1 billion AI-enabled cost savings program is in place, with $300 million expected in savings this fiscal year [68] - **Investment Focus**: Investments are aligned with driving AI PCs and enhancing print capabilities [66] Capital Allocation - **Free Cash Flow**: Emphasis on maintaining free cash flow despite market challenges, with a focus on revenue growth from share gains and pricing actions [61] - **Shareholder Returns**: HP has returned approximately $19 billion to shareholders over the last five years [86] Competitive Landscape - **Tariff Environment**: Section 301 tariffs remain a concern for the print business, but the PS business is largely exempt [84] - **Market Position**: HP is positioned strongly in both print and personal systems, with no immediate need for consolidation [72] Future Outlook - **Long-term Strategy**: Focus on AI and the future of work, with a commitment to delivering shareholder value through disciplined capital allocation [86] Additional Insights - **Peripherals Market**: A third of the PS growth margins come from non-PC related businesses, which are expected to grow and have higher margins [32] - **AI Integration**: AI is being integrated into supply chain processes to enhance efficiency and reduce costs [69]

Core Viewpoint - HPQ Silicon Inc. has successfully closed a non-brokered private placement, raising a total of $3 million CAD through the issuance of 18,181,819 units at a price of $0.165 CAD per unit, aimed at advancing its innovative projects in silicon and hydrogen technologies [1][2]. Group 1: Private Placement Details - The private placement consists of units, each comprising one common share and one non-transferable warrant, with the warrants exercisable at $0.25 CAD for 24 months [2]. - The offering was fully subscribed by an investor outside of Canada [2]. - A cash finder's fee of $180,000 will be paid, along with the issuance of 1,090,909 non-transferable warrants to the finder, also exercisable at $0.25 CAD for 24 months [3]. Group 2: Use of Proceeds - The net proceeds from the offering will be allocated for general working capital, accelerating the execution of the Silicon-Based Battery Material pilot plant project, and continuing the development of hydrogen-based projects [4]. Group 3: Company Overview - HPQ Silicon Inc. is focused on advanced materials technology, particularly in the production of high-purity silicon and silica for energy storage and industrial applications [1][6]. - The company is developing next-generation silicon-based anode materials and is involved in clean-hydrogen and waste-to-energy technologies, holding exclusive North American rights [6][7]. - HPQ aims to become a low-cost, zero-CO₂ producer of fumed silica and high-purity silicon, supported by technical partnerships [7].

Investors also cheered the PC maker's plans for a 20% hike to cash ​dividends and an additional $10 billion share repurchase program.Dell's shares surged to a three-month high. Trading at $142.31, it ​was on track to mark its biggest one-day jump in nearly two years.Data center equipment makers such as Dell said it expects AI server revenue to grow ​103% to ​about $50 billion in fiscal 2027.Live EventsAt least seven Wall Street brokerages ⁠raised price targets on the stock, with J.P.Morgan expecting it ​to ...

The Harbor Capital Advisors released its “Mid Cap Value Fund’s” Q4 2025 investor letter. A copy of the letter can be downloaded here. Harbor Mid Cap Value Fund, subadvised by LSV Asset Management, delivered solid outperformance in the fourth quarter of 2025, with the Institutional Class returning 4.07% versus 1.42% for the Russell Midcap Value Index, benefiting from strength in value stocks as the Russell Midcap Growth Index declined 3.7% during the period. U.S. equities broadly advanced, with the S&P 500 ...

Economic Outlook - BlackRock's Chief Investment Officer of Global Fixed Income, Rick Rieder, expressed optimism about the economy, citing potential tax cuts from President Trump as a means to maintain economic momentum despite concerns about the national deficit [1] - Rieder emphasized the importance of fostering a hotter economy through tax incentives and deregulation, viewing growth as a primary method to diffuse national debt [1] - He believes the Federal Reserve should cut rates to moderate levels to support a growth-oriented environment [1] Market Analysis - Rieder described the current market as fascinating yet challenging, highlighting the need for humility among investors as industries undergo rapid reevaluations [2] - He predicts the economy will grow above 5% nominal this year, with solid earnings growth expected [2] - A significant technical condition noted is the reliance on stock buybacks from hyperscalers, which have provided support during market pressures [2] Undervalued Stocks - A list of the 10 most undervalued stocks under $30 was provided, focusing on companies trading below a forward P/E of 15 and recently reporting noteworthy developments [3][5] - The strategy aims to identify stocks popular among analysts and elite hedge funds, with a historical performance of 427.7% since May 2014, outperforming benchmarks by 264 percentage points [6] Plains GP Holdings (NASDAQ:PAGP) - Plains GP Holdings reported a Q4 adjusted EBITDA of $738 million and a full-year total of $2.833 billion, undergoing a strategic transformation into a pure-play crude oil midstream provider [7] - The crude oil segment contributed $611 million to the final quarter's EBITDA, while the NGL segment faced seasonal volatility [8] - The company aims for $100 million in annual cost savings by 2027 and plans to invest ~$350 million in growth capital to enhance operations [9] HP Inc. (NYSE:HPQ) - HP reported a 7% year-over-year revenue increase for FQ1 2026, reaching $14.4 billion, driven by an 11% revenue jump in the Personal Systems segment [11] - The company faces rising input costs, particularly for DRAM and NAND memory, which have surged to ~35% of the PC bill of materials [12] - HP maintained its full-year guidance but expects to land at the lower end of its non-GAAP EPS range due to anticipated declines in PC unit demand [13]

Core Insights - The company announced a 20% increase in its cash dividend and an additional $10 billion for its share repurchase program, indicating a strong commitment to returning value to shareholders [1][9] - Major tech firms are projected to invest at least $630 billion in AI infrastructure this year, which is expected to significantly increase demand for server and data center equipment from vendors like Dell [1][9] Company Performance - Dell forecasts annual revenue between $138 billion and $142 billion, surpassing analysts' average estimate of $125.54 billion [5][9] - The company expects annual adjusted earnings per share of $12.90, exceeding estimates of $11.59 [7][9] - In the first quarter, Dell anticipates revenue between $34.7 billion and $35.7 billion, above estimates of $29.13 billion [7][9] - Dell reported record revenue of $33.4 billion in the fourth quarter, beating estimates of $31.73 billion, with an adjusted EPS of $3.89 also exceeding the $3.53 estimate [7][9] Market Dynamics - The memory chip shortage is expected to dampen global demand for consumer electronics, including PCs, smartphones, and gaming consoles [5][9] - Companies like Dell and HP Inc. have implemented price increases to offset rising memory chip costs due to the AI infrastructure buildout [2][10] - Dell's revenue from its infrastructure solutions group, which includes storage, software, and server offerings, surged 73% to $19.60 billion, while sales from the client solutions group rose 14% to $13.49 billion [8][9] Customer Base and Growth - Dell has more than 4,000 AI server customers, including notable clients such as Elon Musk's AI startup xAI and CoreWeave [4][9] - The company expects AI server revenue to grow by 103% to approximately $50 billion in fiscal 2027 [3][9]

Group 1 - The article emphasizes the advantages of a dividend-focused value investment strategy, highlighting capital preservation and steady income growth as key benefits [1] - The author discusses a diversified dividend stock portfolio that prioritizes high-quality value stocks, which are expected to provide meaningful growth and long-term safety [1] Group 2 - The author has a beneficial long position in HPQ shares, indicating a personal investment interest in the company [2] - The article is presented as a personal opinion and does not constitute investment or tax advice, reflecting the author's status as a private investor [3]

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The U.S. stock market is exhibiting strong bullish momentum this Wednesday, February 25, 2026, as investors aggressively position themselves ahead of what is widely considered the most critical earnings report of the season. The major indexes are trading firmly in the green, buoyed by a significant rebound in the technology sector and easing geopolitical tensions. Market participants are particularly focused on the artificial intelligence (AI) narrative, which has received a fresh boost from new corporate p ...