Hewlett Packard Enterprise and Schneider Electric: The Hidden Giants of AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Should l Buy HPE?
Source: Fool
- Market Performance: As of January 14, AI server builder Super Micro Computer has seen a three-year gain of 231%, while AI chip designer Nvidia has skyrocketed by 1,066%, highlighting the robust growth potential of the AI market.
- Infrastructure Development: Hewlett Packard Enterprise (HPE), dubbed the general contractor of the AI revolution, boasts six of the world's top ten supercomputers thanks to its 2019 acquisition of Cray, showcasing its strong performance in the AI systems business.
- Valuation Advantage: HPE shares currently trade at 8.0 times forward earnings and 0.9 times trailing sales, allowing investors to engage in AI market growth without paying a hefty premium, reflecting its relatively undervalued investment potential.
- Schneider Electric's Role: Schneider Electric, the unsung hero of AI data centers, provides power distribution and cooling systems, with annual sales around $42 billion, serving the world's top ten cloud computing and AI software giants, underscoring its significance in AI infrastructure.
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Analyst Views on HPE
Wall Street analysts forecast HPE stock price to rise
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 22.200
Low
21.00
Averages
27.13
High
31.00
Current: 22.200
Low
21.00
Averages
27.13
High
31.00
About HPE
Hewlett Packard Enterprise Company is a global technology company focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge to cloud. Its customers range from small-and-medium-sized businesses to large global enterprises and governmental entities. Its segments include Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other. Its Server segment offerings consist of general-purpose servers for multi-workload computing, workload-optimized servers, and integrated systems. Its Hybrid Cloud segment offers a range of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service space. The Networking segment develops and sells high-performance networking and security products and services. Its Financial Services segment provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in Trading Volume: Trading volume reached 115 million shares, approximately four times the three-month average, highlighting strong market interest in Super Micro's growth potential.
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- Webcast Details: The call will be available via live audio webcast on HPE's website, allowing investors to tune in at www.hpe.com/investor/2026Q1Webcast, thereby enhancing transparency and engagement with stakeholders.
- Replay Availability: A replay of the webcast will be accessible shortly after the call and will remain available for approximately one year, providing an opportunity for investors who cannot attend live to review the information.
- Company Overview: HPE is a leader in essential enterprise technology, integrating AI, cloud, and networking to empower customers across industries to optimize operational performance and transform data into actionable insights, maximizing their business impact.
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- Capital Expenditure Plans: Management anticipates capital spending between $52 billion and $56 billion in 2026, with approximately 40% of revenue allocated to capital expenditures, indicating strong confidence in future growth and ongoing investment in the AI market.
- Increase in Advanced Process Share: Three-nanometer chips accounted for 28% of total wafer revenue, five-nanometer for 35%, and seven-nanometer for 14%, totaling 77% of revenue from the most advanced processes, highlighting the robust demand driven by AI applications and TSMC's technological edge.
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- Market Opportunity: The implementation cost of Generate for Healthcare represents only 0.1% of net patient revenue, providing healthcare organizations with a substantial revenue opportunity while helping partners stand out in a competitive market.
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See More
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- Platform Benefits: The new platform, built on HPE Private Cloud AI and co-developed with NVIDIA, enables dynamic resource allocation, optimizes network performance, and reduces internal development cycles, allowing for faster product and service launches that enhance customer experience.
- Commitment to Data Sovereignty: This collaboration underscores 2degrees' commitment to data sovereignty, ensuring that New Zealand customer and operational data is stored locally, complying with increasingly complex global data regulations and strengthening the company's competitive position in the market.
- AI Application Prospects: Initial AI use cases include autonomous network operations and predictive maintenance, with 2degrees already seeing significant results across multiple areas, driving the network towards a smarter, more resilient, and self-driving future to better serve customers across New Zealand.
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