Shares of HP Inc. (NYSE:HPQ) were in focus on Monday following Nvidia Corp.'s (NASDAQ:NVDA) blockbuster unveiling of its RTX Spark Superchip at Computex 2026. The announcement pushed HPQ's week-on-week Benzinga Edge momentum score to an 82.28th percentile, capping off a massive 40.85% rally over the month.

The Structural Shift In PCs

Nvidia’s aggressive entry into consumer hardware aims to fundamentally reshape the personal computer ecosystem by running advanced AI agents locally.

The new Arm Holdings PLC (NASDAQ:ARM)-based chip, co-developed alongside MediaTek and Microsoft Corp. (NASDAQ:MSFT), positions HPQ as a primary launch partner for next-generation AI PCs hitting the market this fall.

HPQ has already confirmed a robust rollout of upcoming laptop and desktop models utilizing the new architecture. This secular shift toward Windows on Arm has injected heavy optimism into the market, triggering a swift upward adjustment in Benzinga's proprietary technical rankings.

Apart from momentum, HPQ boasts of a positive price trend in the short, medium, and long terms as per the Benzinga Edge Stock Rankings, along with a poor growth score.

Goldman Sachs Signals Caution

However, despite the heavy retail tailwinds and a recent earnings beat of $0.86 per share, Wall Street institutional analysts remain deeply skeptical. Goldman Sachs reiterated a Sell rating on the stock, maintaining a $19.00 price target that implies a steep 35.24% downside from Monday’s close.

Goldman’s bearish outlook focuses on near-term operational headwinds rather than long-term AI hype. The firm noted that HPQ’s Personal Systems margins are guided to drop below their 5–7% long-term range in the second half of the year, bottoming out in the fourth quarter.

Furthermore, rising resin and plastic input costs, alongside constrained DRAM/NAND supply chains, threaten to squeeze profitability. Goldman warns that aggressive industry competition may ultimately offset HPQ’s strategic pricing efforts through 2027.

HPQ Stock Tumbles In 2026

HPQ shares have risen 31.69% YTD and 20.30% in the six months. Meanwhile, the S&P 500 index was up 10.81% YTD.

Over the last year, HPQ has gained 17.83%, and it has traded in a 52-week range of $17.56 to $29.55. The stock was higher by 0.99% in premarket on Tuesday.

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