Apple vs. HP: Which PC Maker Stock is a Better Buy Right Now?

Core Insights - The global PC market is projected to grow 2.1% year-over-year in 2025, with a CAGR of 0.4% from 2025 to 2029, reaching 422.6 million units by 2029 [1] - The demand for AI-powered PCs and the end-of-service for Microsoft Windows 10 in October 2025 are significant growth catalysts [3] Company Analysis: Apple - Apple's Mac business is experiencing strong demand for its M4 chip series, with new product launches enhancing its portfolio [3] - In Q1 2025, Apple gained market share, reaching 8.7%, a 70 basis point increase year-over-year, with shipments growing 14.1% to 5.5 million units [4] - The global availability of Apple Intelligence through macOS Sequoia 15.4 updates in multiple languages is expected to positively impact Mac's market prospects [5] - The consensus estimate for Apple's fiscal 2025 earnings has decreased by 0.8% to $7.12 per share, indicating a 5.48% growth over fiscal 2024 [10] - Apple has consistently beaten earnings estimates, with an average surprise of 4.68% over the last four quarters [11] - Year-to-date, Apple shares have declined by 17.1% [12] - Apple's valuation is considered stretched, with a forward Price/Sales ratio of 7.60X, resulting in a Value Score of D [14] Company Analysis: HP - HP is focusing on the growing interest in Generative AI-enabled PCs, forecasting that 40-60% of all PCs will be AI PCs within three years [6] - In Q1 2025, HP's market share was 20.2%, a 20 basis point increase year-over-year, with shipments growing 6.1% to 12.8 million units [8] - The consensus estimate for HP's fiscal 2026 earnings is $3.39 per share, down 1.7% over the past 30 days, indicating a slight increase of 0.3% over fiscal 2025 [9] - HP's earnings have lagged consensus estimates three times in the past four quarters, with an average negative surprise of 1.16% [11] - Year-to-date, HP shares have dropped by 11.2% [12] - HP shares are trading at a lower valuation compared to Apple, with a forward Price/Sales ratio of 0.51X and a Value Score of B [14] Conclusion - Apple's strong Mac portfolio and product innovations position it favorably in the market, while HP's reliance on China for manufacturing presents significant risks [17] - Apple is rated as a stronger investment option compared to HP, which has a weaker rating [17]