Lores said the company is creating AI-enabled PCs that will allow customers to build spreadsheets and analyze data in record time. Instead of analysts spending hours poring over figures, AI will be able to create spreadsheets, analyze data and even dialogue about its findings in seconds. These new models could hit the market as early as 2024.
"I have been in this industry for many, many years, Jim," Lores told Cramer. "I have never seen an opportunity like this, to really drive innovation and drive new type of customer needs that we really think are going to be fundamental." HP released a less-than-stellar second-quarter earnings report on Tuesday with $12.91 billion in revenue, below the $13.07 billion expected from Refinitiv estimates. But the company did beat on second-quarter earnings and raised its full-year forecast.
However, Lores is confident the second half of the year will be much stronger as HP finishes up its channel inventory reduction and the end-of-year shopping season ramps up. "It's an overall market adjustment that we think is going to happen. If you look at the first half results, they were impacted by the reduction of channel inventory we and the industry have been driving," he said. "And at the same time, in the second half, because of back to school, because of the holiday season especially, consumer demand will be stronger."