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HP Plans Saudi Manufacturing Expansion for AI-Focused Computers

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 11/21/2025, 4:40 pm ET 11/21/2025, 4:40 pm ET | 5 min 5 min read
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HP Inc.’s stocks have been trading up by 6.59 percent, driven by positive sentiment surrounding key market developments.

Technology industry expert:

Analyst sentiment – positive

  1. Market Position & Fundamentals: HPQ currently operates with moderate profitability margins, evidenced by an EBIT margin of 5.9% and a profit margin of 4.83%. While the company’s gross margin stands at a modest 20.9%, its valuation figures, most notably the price-to-sales ratio of 0.38 and price-to-free cash flow of 3.3, suggest HPQ is undervalued relative to its current earnings capacity. However, the negative book value per share implies potential financial instability. Additionally, revenues have steadily declined over the past three to five years, underscoring the need for strategic improvements or market expansion.

  2. Technical Analysis & Trading Strategy: Weekly price trends for HPQ indicate a breakout above the 23.00 level, with a recent high of 24.02 on November 21st. The upward momentum is supported by an engulfing candlestick formation and increased volume, suggesting a continuation of the bullish trend. Trading strategy should focus on taking long positions as the price approaches the previous resistance level at 23.00, while targeting the next resistance at 24.50. Stop-loss orders should be set just below 22.60 to mitigate downside risk.

  3. Catalysts & Outlook: Recent news highlights HPQ’s strategic initiative to produce millions of computers in Saudi Arabia by partnering with SAMI Advanced Electronics, setting a foundation for future growth driven by artificial intelligence enterprise demand. These moves, coupled with HPQ celebrating significant corporate milestones, suggest positive momentum in aligning with industry standards. Compared to other Technology and Hardware & Equipment benchmarks, HPQ is positioned to capture emerging market segments, particularly in AI. Key support lies around 22.00, with a potential upside target of 25.50 if these strategic initiatives bear fruit. Overall, HPQ’s growth plans and current valuation reinforce a positive long-term outlook.

  • HP is partnering with SAMI Advanced Electronics to facilitate this technology-driven expansion, underscoring the Kingdom’s renewed emphasis on high-tech capabilities.

  • The HP spin-off, marking its 10th anniversary, highlights ongoing corporate milestones alongside RingCentral’s strides in AI-powered communications.

Candlestick Chart

Weekly Update Nov 17 – Nov 21, 2025: On Friday, November 21, 2025 HP Inc. stock [NYSE: HPQ] is trending up by 6.59%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

The newest shift towards Saudi manufacturing signifies a transformative step for HP, poised to bolster its technological footprint globally. Recent earnings show HP’s revenue reporting a robust $53.56 billion, although with a modest yearly decline at 0.74% over five years. Though profitability margins, such as EBIT margin at 5.9% and net income of $763 million, indicate consistent management efficacy, rapid deployment in AI sectors may provide a vital boost in their valuation. Furthermore, with price-to-earnings sitting at an attractive 8.18, HP presents a favorable investment for long-term strategy enthusiasts, counterbalanced by a current ratio of 0.7 suggesting short-term liquidity constraints.

More Breaking News

Considering these metrics, HP’s projected computer production scaling up in Saudi Arabia demonstrates not just a geographical expansion but also a fortified commitment to AI-enhanced solutions, promising stronger market positions and possibly revising revenue trajectories. Meanwhile, the share’s recent closing price of $23.96 reflects steady investor sentiment, mirroring anticipation for this strategic venture in minimizing operational costs and enhancing service delivery to enterprise clients.

Conclusion

The strategic direction HP embarks on into Saudi Arabian manufacturing aligns seamlessly with broader market trajectories and positions HP distinctly in tapping unexplored opportunities within international IT landscapes. The focus on AI caters to a growing global need for digital solutions, thus enhancing HP’s potential to amend previously stagnant revenue growth. As millionaire penny stock trader and teacher Tim Sykes says, “It’s not about how much money you make; it’s about how much money you keep.” This perspective resonates as HP navigates trading strategies, prioritizing sustainable profit retention over mere revenue generation. As leveraged in this partnerships-driven approach, HP fortifies its ability to maneuver across volatile market landscapes—all while keeping a vigilant eye on technological advancements and consumer needs. In essence, as HP heralds its anniversary of structure realignment post-spin-off, it evidences a revitalized strategy adaptable to today’s dynamic tech-driven climate.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”