Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

Hewlett Packard Enterprise upgraded to “Overweight” by Barclays

admin by admin
September 25, 2024
in Stock
0
Hewlett Packard Enterprise upgraded to “Overweight” by Barclays
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

Investing.com — Hewlett Packard Enterprise Co (NYSE:HPE) is likely to continue growing its artificial intelligence server revenues and see improvement in its storage business, according to analysts at Barclays.

In a note to clients raising its rating of HPE to “Overweight” from “Equal-weight”, the analysts said that, despite taking a more “prudent” approach to its AI operations, the company is still “accelerating orders and revenue” in the area.

In its most recent quarter, AI server orders had surged by 167% versus the prior three-month period, the analysts noted.

“We expect AI server revenue to grow sequentially [more than] 30% next [quarter] as well. Importantly, HPE has been able to remain competitive in the arena without further pressuring already low [gross margin] business,” the analysts said.

“We estimate HPE is getting [roughly] 15% [gross margin] on its AI server business, and this is with majority hyperscaler business.”

They added that HPE’s storage segment is updating its portfolio and working to replace third-party intellectual property with their “own internally developed solutions.” The move will help secure future recurring revenue, they argued.

The comments come after HPE lifted its annual profit forecast earlier this month, thanks in part to businesses spending more on developing their AI infrastructure.

Despite fierce competition from fellow server manufacturers like Dell Technologies (NYSE:DELL), HPE said it now expects to post full-year adjusted earnings per share of $1.92 to $1.97, up from a prior outlook of $1.85 to $1.95. Dell also raised its annual profit and revenue guidance in August.

But shares in the group dropped at the time as investors fretted over a dip in third-quarter revenue in HPE’s data analysis and traditional cloud divisions, Reuters reported. HPE’s decision to leave its full-year revenue unchanged also weighed on the stock, the news agency said.

This post appeared first on investing.com

Previous Post

Factbox-Most brokerages expect 50 bps of Fed rate cuts for rest of 2024

Next Post

Buffett’s Berkshire Hathaway offloads more shares in Bank of America

admin

admin

Next Post
Buffett’s Berkshire Hathaway offloads more shares in Bank of America

Buffett’s Berkshire Hathaway offloads more shares in Bank of America

Trending News

Why UBS thinks you should gradually increase exposure to global direct real estate

Why UBS thinks you should gradually increase exposure to global direct real estate

January 4, 2025
Inverted swaps curve shows investors pare China rate cut bets

Inverted swaps curve shows investors pare China rate cut bets

January 14, 2025
IMF chief sees steady world growth in 2025, continuing disinflation

IMF chief sees steady world growth in 2025, continuing disinflation

January 11, 2025
Subscribe to Insightful Word


    Recent News

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    June 5, 2025
    Ripple releases $2.18B in XRP, price dips 2%

    Ripple releases $2.18B in XRP, price dips 2%

    June 5, 2025
    Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    June 5, 2025
    Why Bank of America sees 13% upside on Roblox (RBLX)

    Why Bank of America sees 13% upside on Roblox (RBLX)

    June 5, 2025

    Recent News

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant

    June 5, 2025
    Ripple releases $2.18B in XRP, price dips 2%

    Ripple releases $2.18B in XRP, price dips 2%

    June 5, 2025

    Latest News

    • ARB eyes recovery as Arbitrum taps agentic DeFi revolution with $1M grant
    • Ripple releases $2.18B in XRP, price dips 2%
    • Nintendo Switch 2 launch sees shortages as 2.2M vie for units in Japan

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.