Best Buy's stock surges as company begins AI upgrade cycle for PCs and smartphones

From CNBC: 2024-05-30 15:12:43

Shares of Best Buy saw a spike as the company discussed the beginning of an AI upgrade cycle for personal computers and devices. Despite a 6.5% drop in revenue to $8.85 billion in the fiscal 2025 first quarter, adjusted earnings per share rose by 5.3%. Management highlighted gains in services and laptops offsetting struggling categories like appliances. The company aims to leverage services to differentiate from online retail giants like Amazon, with over 40% of its AI PC assortment exclusive to Best Buy. Best Buy remains optimistic about the consumer tech upgrade cycle driven by AI-enabled devices post-pandemic, leading to improved sales trends and foot traffic. The company anticipates sequential improvements in same-store sales for fiscal 2025.



Read more at CNBC:: Best Buy surges on signs the AI-driven PC and smartphone refresh is starting