HP Inc. (NYSE:HPQ) is betting big on AI-powered PCs and print market consolidation to bolster its growth.

According to JPMorgan analyst Samik Chatterjee, who met with HP's Chief Commercial Officer Dave McQuarrie at CES, the company is emphasizing the "Future of Work" and operational discipline as key priorities.

AI PCs: Leading The Charge

At CES, HP unveiled a new lineup of AI-enhanced PCs, including the EliteBook Ultra G1i and X Flip G1i, designed to cater to commercial customers. These devices feature premium hardware, HP AI Companion, and advanced security through HP Wolf Security. Available later this month, they aim to redefine productivity for enterprise users.

"HPQ sees a bigger opportunity to differentiate AI PC products relative to competition compared to the traditional PC market," Chatterjee highlighted. This focus on enterprise-specific productivity tools positions HP as a front-runner in the AI PC race.

Long-Term Potential In Software

HP is also exploring monetization opportunities for its software-based AI features, potentially through subscription models. However, as Chatterjee noted, "It still remains very early in the AI PC adoption curve to quantify the value attributed to the software."

Print Market Consolidation: A Welcome Shift

HP is optimistic about the print market's future, buoyed by Xerox Holdings Corp's (NASDAQ:XRX) acquisition of Lexmark. HP believes consolidation in the print market was overdue, pointing to better industry fundamentals and unserved demand opportunities.

However, aggregate print volumes are expected to decline in 2025 due to challenges in the value segment.

A Bullish Outlook

With the Windows 10 EOL refresh cycle expected to pick up in late 2025, HP sees a promising horizon for its business segments. Cost discipline and recurring revenue remain central to its strategy in navigating competitive pressures and driving margins, the analyst said.

Investors keeping an eye on HP's evolving product portfolio and market dynamics might find its AI and print strategies compelling as the company positions itself as a differentiated player in both markets.