HP Inc's stock soared to a record high on Thursday after billionaire Warren Buffett's Berkshire Hathaway said it had taken an 11.4-percent stake valued at about $4.2 billion in the maker of personal computers and printers.
Berkshire revealed in a Wednesday night regulatory filing that it owned nearly 121 million HP shares, including 11.1 million purchased this week.
Shares of HP closed up $5.15, or 14.8 percent, at $40.06, after earlier rising to $41.46.
Companies' stock prices often rise when Berkshire discloses new stakes, regarded as a stamp of approval from Buffett.
Berkshire does not regularly invest in technology companies, despite ending 2021 with a $161.2-billion stake in Apple Inc.
"Berkshire Hathaway is one of the world's most respected investors and we welcome them as an investor," HP said in a statement.
Separated in 2015 from the former Hewlett-Packard, HP is benefiting from increased demand as people spend more time working and being schooled at home.
The Palo Alto, California-based company agreed last month to buy audio and video accessories maker Poly, once known as Plantronics, for $1.7 billion.
Buffett has struggled to invest Berkshire's cash, which totaled $146.7 billion at year end, citing high valuations and competition from private equity and other investors.
But in the last month, the Omaha, Nebraska-based conglomerate said it has committed approximately $22 billion to major new investments.
These include a 14.6-percent stake in Occidental Petroleum Corp and an $11.6 billion purchase of insurer Alleghany Corp, Berkshire's largest acquisition since 2016.
Berkshire also owns dozens of businesses including Geico auto insurance and the BNSF railroad.
Berkshire repurchased $27 billion of its own stock in 2021.