June 2 (Reuters) – Hewlett Packard Enterprise shares rallied nearly 29% in premarket trade on Tuesday, as investors cheered \u200cthe AI server maker pulling forward its long-term financial \u200ctargets by two years, buoyed by strong AI infrastructure demand.<\/p>\n
HPE, which competes with \u200bDell Technologies and Super Micro Computer in enterprise servers, is seeing sustained demand as large enterprises bring forward purchases to avoid supply risks amid surging memory chip prices.<\/p>\n
Hyperscalers including Alphabet and Amazon \u200care set to spend \u2060more than $700 billion on AI infrastructure this year, likely boosting demand for HPE’s server and networking \u2060products.<\/p>\n
On Monday, the company raised its fiscal 2026 revenue growth forecast to 29%-33% from 17%-22% earlier and increased its networking segment \u200bgrowth outlook \u200bto 72%-75% from 68%-73%.<\/p>\n
“The biggest \u200btakeaway from the quarter was \u200cthat HPE is benefiting from the same pricing dynamic that has recently driven upside at Dell – customers are absorbing materially higher server prices with little evidence of demand destruction,” Morgan Stanley analysts said in a note.<\/p>\n
Shares of Dell and SMCI rose \u200c3% and 5% respectively.<\/p>\n
HPE CFO Marie \u200bMyers told Reuters the key shift \u200bthis quarter was the \u200bgrowing adoption of agentic AI as a core \u200cworkload by enterprise customers. The company \u200bsaid its revised \u200bfiscal 2026 ranges for adjusted EPS and free cash flow were higher than what it projected to achieve by \u200bfiscal 2028.<\/p>\n
HPE has \u200ca 12-month forward price-to-earnings ratio of 15.93, compared with \u200bDell’s 24.14 and Cisco’s 25.56.<\/p>\n
(Reporting by Kanishka Ajmera in \u200bBengaluru; Editing by Mrigank Dhaniwala)<\/p>\n","protected":false},"excerpt":{"rendered":"June 2 (Reuters) – Hewlett Packard Enterprise shares rallied nearly 29% in premarket trade on Tuesday, as investors…\n","protected":false},"author":2,"featured_media":478982,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,15586,206539,154995,61,60,206540,80],"class_list":["post-478981","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-dell","tag-financial-targets","tag-hewlett-packard-enterprise","tag-ie","tag-ireland","tag-server-prices","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/478981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=478981"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/478981\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/478982"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=478981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=478981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=478981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}