HPE Launches Next-Gen Server to Meet AI Demands
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 01 2026
0mins
Source: stocktwits
- New Server Launch: HPE unveiled the ProLiant Compute DL394 Gen12 server at Computex in Taiwan, featuring Nvidia Vera CPUs designed for high-performance AI and data processing workloads, with availability set for fall 2026, addressing the urgent market demand for efficient computing solutions.
- NYSE Collaboration Intent: The New York Stock Exchange expressed interest in leveraging HPE's new servers to enhance its processing capacity, handling over 1.1 trillion messages daily, indicating the significance of HPE's products in financial market infrastructure and further solidifying its position in enterprise computing solutions.
- Positive Market Reaction: HPE's stock rose over 7% in pre-market trading and is on track to hit a new record high, reflecting strong investor anticipation for the new server and the upcoming first-quarter earnings report, showcasing market confidence in HPE's future growth.
- Optimistic Financial Outlook: HPE expects first-quarter revenue of $9.77 billion and earnings per share of $0.53, and despite fierce competition in the IT hardware space, the company's diversification through the acquisition of Juniper Networks enhances its networking business appeal, potentially improving gross margins.
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Analyst Views on HPE
Wall Street analysts forecast HPE stock price to fall
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 46.800
Low
21.00
Averages
27.13
High
31.00
Current: 46.800
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 from edge-to-cloud. The Cloud & AI segment includes server and storage offerings. The Cloud & AI server portfolio includes general-purpose servers for multi-workload computing and workload-optimized servers for applications, and integrated systems designed to address high-performance computing and supercomputing (including exascale applications), AI, data analytics, and transaction processing workloads for government and commercial customers. The Networking segment develops and sells high-performance network and security products and services. The Corporate Investments and Other segments include the advisory and professional services business, which primarily offers consultative-led services, HPE and partner technology expertise and advice, implementation services as well as complex solution engagement capabilities.
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: The company's trading volume reached 243.4 million shares, approximately 409% above the three-month average of 47.8 million shares, reflecting strong investor interest in its growth potential, which may further drive stock price volatility.
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- Surge in Trading Volume: The trading volume reached 243.4 million shares, a 409% increase over the three-month average, reflecting investor interest in the company's growth potential, particularly in the AI sector.
- Market Recovery: As Super Micro's stock rebounded, the S&P 500 rose 1.75% and the Nasdaq Composite climbed 2.54%, showcasing overall strength in the computer hardware sector, which further bolstered investor confidence.
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- Financing Impact: Super Micro Computer's announcement of a $7 billion equity financing plan led to a 9.22% increase in stock price to $31.97, indicating strong market demand for its AI server backlog while raising concerns about dilution risk.
- Surge in Trading Volume: The company's trading volume reached 243.4 million shares, approximately 409% above the three-month average of 47.8 million shares, reflecting strong investor interest in its growth potential, which may further drive stock price volatility.
- Order Context: With approximately $39 billion in AI server orders, the financing will fund component purchases, and despite dilution risks, the robust order book supports future revenue growth for Super Micro Computer.
- Market Performance: Overall, the S&P 500 rose 1.75% and the Nasdaq Composite climbed 2.54%, indicating broad strength in tech stocks, aligning with Super Micro Computer's stock recovery amidst this trend.
See More
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- Financing Impact: Super Micro Computer (SMCI) announced a $7 billion equity financing plan, boosting its stock price by 9.22% to $31.97, indicating strong market demand for its AI server orders while raising concerns about dilution risk.
- Surge in Trading Volume: The trading volume reached 243.4 million shares, a 409% increase over the three-month average, reflecting investor interest in the company's growth potential, particularly in the AI sector.
- Market Recovery: As Super Micro's stock rebounded, the S&P 500 rose 1.75% and the Nasdaq Composite climbed 2.54%, showcasing overall strength in the computer hardware sector, which further bolstered investor confidence.
- Execution Risk Focus: Despite Super Micro's substantial order book, approximately $39 billion in AI server orders, attention must be paid to execution capabilities, including component procurement and converting orders into acceptable margins, which will directly impact investor confidence and future stock performance.
See More
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- Financing Impact: Super Micro Computer's announcement of approximately $7 billion in equity financing to support a $39 billion backlog of AI server orders led to a 27.98% drop in stock price, indicating market concerns over dilution and execution risks.
- Surge in Trading Volume: The trading volume reached 184 million shares, which is 316% above the three-month average, reflecting heightened investor attention and anxiety regarding the company's future prospects.
- Industry Comparison: Amid weakening AI server demand, peers Dell Technologies and Hewlett Packard Enterprise saw their stock prices decline by 3.13% and 5.76%, respectively, highlighting the pressure faced by the entire sector.
- Investor Recommendations: Analysts suggest that investors consider holding shares of peers like Dell and Hewlett Packard Enterprise to mitigate financial risks while participating in strong market demand, indicating that Super Micro's financing plan may pose challenges to its long-term growth.
See More
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- Significant Stock Drop: The company's stock closed at $29.27 on Wednesday, down 27.98%, with trading volume reaching 184 million shares, about 316% above the three-month average, reflecting market concerns over the financing plan.
- Market Reaction Analysis: Despite the financing plan indicating robust order demand, investors reacted strongly to potential margin pressures and dilution risks, leading to a significant drop in the stock price.
- Industry Comparison: Amid weakened sentiment in the AI server market, peer companies like Dell and Hewlett Packard Enterprise also saw declines of 3.13% and 5.76%, respectively, highlighting challenges faced across the industry.
See More
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- NASA's New Partnerships: NASA awarded contracts worth $219 million to Astrolab and $220 million to Lunar Outpost, indicating a preference for emerging companies, which could potentially affect Intuitive's market position.
- Future Opportunity Outlook: Although Intuitive Machines missed out on the initial $439 million in contracts, NASA has budgeted $4.6 billion for the LTV project, suggesting that there may be more opportunities for additional vendors as the Moon Base efforts progress.
- Market Reaction Analysis: The rapid decline in Intuitive Machines' stock price following the contract loss has severely impacted market confidence in its long-term prospects, prompting investors to closely monitor future bidding opportunities and NASA's subsequent plans.
See More
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- Rover Design Features: Astrolab's CLV-1 lunar vehicle can carry two astronauts or 1.6 metric tons of supplies with a top speed of 6 mph, while Lunar Outpost's Pegasus rover features manual, remote, and autonomous driving modes, reaching speeds of 9 mph, with an expected lifespan of one year and a travel range of 560 miles.
- Future Plans and Timeline: Both companies are set to design, build, and test their rovers over the next 18 months, aiming for readiness by December 2027, when they will be launched to the moon via Blue Origin rockets to participate in the 2028 Artemis IV mission.
- Opportunities for Intuitive Machines: Although Intuitive Machines missed out on the initial contracts, NASA has allocated $4.6 billion for the LTV project, indicating potential future opportunities through on-ramp competitions, suggesting that its role in lunar exploration is not yet over.
See More
