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HP Inc. (HPQ) Balances Procurement Strategy With Security Commitments

HP Inc. (NYSE:HPQ) is one of the best affordable tech stocks to buy right now. A Nikkei report on February 5 stated that HP Inc. (NYSE:HPQ) is one of four companies that are actively considering sourcing memory chips from Chinese manufacturers for the first time. According to the report, this is a significant shift in procurement strategy for the world’s leading PC brands, who traditionally rely on American, South Korean, and Taiwanese suppliers for critical components.

Ken Wolter / Shutterstock.com

Already, Dell and HP have begun qualifying DRAM chips from ChangXin Memory Technologies. This process involves testing the components to ensure they meet quality and performance standards. Meanwhile, Acer and Asus are requesting that their Chinese manufacturing partners source locally-made memory chips for production.

The four companies’ move happens when the world is experiencing a severe memory shortage that has disrupted electronics supply chains, said Nikkei. It added that Samsung, SK Hynix, and Micron, which collectively control over 90% of the DRAM market, have redirected the majority of their manufacturing capacity toward producing high-bandwidth memory (HBM) for AI data centers.

Separately, on February 3, HP renewed its multi-year agreement with Karamba Security to continue licensing Karamba’s XGuard cybersecurity software for use across its printer products. The renewal extends a partnership that began in 2020 for three more years.

According to HP, the agreement covers its networked and cloud-connected printers, which are treated as computing devices with firmware that can be targeted by cyberattacks. Karamba’s XGuard technology is integrated into the firmware to help defend against threats.

HP Inc. (NYSE:HPQ) develops and sells personal computers, printers, and related hardware, software, and services. Its product portfolio includes laptops, desktops, printers, and imaging solutions, serving both consumer and enterprise markets worldwide.

While we acknowledge the potential of HP Inc. (NYSE:HPQ) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HPQ and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best Affordable Long Term Stocks to Buy According to Hedge Funds and 7 Best Used Car Stocks To Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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