Hewlett Packard Enterprise shares surged 30% today after a rosy quarter that put it on track to hit long-term financial targets two years ahead of schedule, the latest evidence of strong demand for its AI servers used in data centres.<\/p>\n
The premarket gains, if sustained, would add over $14 billion to the company’s market value of $62.36 billion.<\/p>\n
They follow strong forecasts from rivals Dell and Super Micro Computer as Big Tech presses ahead with around $700 billion in AI spending this year.<\/p>\n
The insatiable demand from the AI industry has allowed server makers to pass on higher costs for supply-constrained memory chips to customers, shielding their margins. The firms said strong supplier ties are also helping them navigate the shortage.<\/p>\n
“The year of refresh” for enterprise IT equipment, AI modernisation and product updates is also benefiting the companies, Piper Sandler analysts said in a client note.<\/p>\n
“While HPE is seeing this tidal wave, we prefer to be in ‘other boats’ given exposures,” Piper Sandler said. Dell shares were up 2.5% before the bell, while those of Super Micro rose 4.7%.<\/p>\n
At least 12 brokerages raised their price targets on HPE’s stock, giving it a median price target of $65, according to data compiled by LSEG. That is up from $26.50 before the report.<\/p>\n
“The biggest takeaway from the quarter was that 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.<\/p>\n
Shares of HPE have nearly doubled this year.<\/p>\n","protected":false},"excerpt":{"rendered":"Hewlett Packard Enterprise shares surged 30% today after a rosy quarter that put it on track to hit…\n","protected":false},"author":2,"featured_media":480492,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,80],"class_list":["post-480491","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ie","tag-ireland","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/480491","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=480491"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/480491\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/480492"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=480491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=480491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=480491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}