HPE Unveils Next-Gen ProLiant DL394 Gen12 Server with NVIDIA Vera CPU
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Newsfilter
- Server Launch: HPE introduced the ProLiant Compute DL394 Gen12 server at COMPUTEX 2026, powered by NVIDIA Vera CPU, specifically designed to meet the high-performance AI and data processing demands, aiming to enhance enterprise capabilities in complex financial modeling and reinforcement learning.
- Performance Edge: The server delivers up to 1.2 TB/s aggregate bandwidth and 14 GB/s per core, significantly accelerating data processing speeds, enabling enterprises to achieve real-time reasoning and efficient operations in the most demanding environments.
- Enhanced Security: The HPE ProLiant DL394 Gen12 embeds Silicon Root of Trust technology and meets NIST's quantum computing resistant security requirements, providing a more secure platform for protecting sensitive workloads and enhancing organizational compliance capabilities.
- Management Optimization: With HPE Compute Ops Management, enterprises can achieve AI-driven operations that reduce server management time and minimize revenue loss risks due to downtime, thereby enhancing overall operational agility.
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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: 53.690
Low
21.00
Averages
27.13
High
31.00
Current: 53.690
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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- Cloud and AI Revenue Boost: Revenue from cloud and AI increased by 23% to $7.7 billion, reflecting heavy investments from enterprise clients in AI infrastructure, further solidifying HPE's leadership in edge-to-cloud hybrid infrastructure.
- Rapid Order Growth: Networking orders grew faster than revenue in the quarter, with campus and branch orders up over 20% and enterprise data switching orders nearly 20%, indicating strong market demand for high-performance networking solutions.
- Optimistic Outlook: The company raised its full-year revenue growth forecast to 29% to 33% and expects adjusted EPS to reach between $3.35 and $3.45, significantly exceeding previous expectations, indicating HPE's strong growth potential amid the AI infrastructure wave.
See More
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- Cloud and AI Revenue Surge: Cloud and AI-related revenue jumped 23% to $7.7 billion, while networking revenue soared 148% to $2.7 billion, reflecting the company's critical role in AI infrastructure investments.
- Margin Expansion: The company's gross margin increased by 810 basis points year-over-year to 36.5%, leading to a nearly doubling of adjusted earnings per share from $0.41 to $0.79, significantly exceeding the company's outlook of $0.51 to $0.55.
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See More
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- Price Fluctuations: Palo Alto Networks has seen a three-day losing streak, although it remains up 9.3% since May 27, while CrowdStrike is up 7.8% and Broadcom is down 1.7%, reflecting the volatility in market sentiment towards these tech stocks.
- Market Sentiment: Analysts have generally raised price targets for these companies, but the excessive enthusiasm for AI-related stocks led to significant pre-earnings price increases, resulting in adjustments post-earnings that highlight the fragility of market sentiment.
- Investment Strategy: Despite short-term price fluctuations, Jim Cramer maintains a bullish outlook on all three companies, advising investors to buy at the right time, emphasizing that their fundamentals remain strong and that increased market supply may exert short-term price pressure.
See More
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- Surge in AI Orders: New AI systems orders reached $1.8 billion, with the AI systems backlog growing to $5.9 billion, indicating sustained demand from enterprise customers for AI solutions, potentially enhancing the company's market share and competitiveness.
- Networking Revenue Surge: Following the acquisition of Juniper Networks, HPE's networking revenue skyrocketed 148% year-over-year to $2.7 billion, although growth was only 10% when excluding the acquisition impact, still showcasing strong momentum in the networking sector.
- Improved Profitability: HPE's cloud and AI segment achieved an operating margin of 12.4% in the quarter, nearly doubling from last year's 6.6%, although still below the networking segment's 21.6%, indicating potential for profitability improvement in a high-demand environment.
See More
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- Significant Revenue Growth: Hewlett Packard Enterprise reported a 40% year-over-year revenue increase to $10.7 billion in its fiscal Q2 2026, exceeding market expectations and demonstrating strong performance in the enterprise hardware sector, thereby solidifying its market position in AI servers.
- Surge in AI System Orders: The company secured $1.8 billion in new AI systems orders during the same quarter, raising its AI systems backlog to $5.9 billion, indicating a rapid increase in demand from enterprise customers for AI solutions, which enhances future revenue potential.
- Acquisition Impact Analysis: While networking revenue surged 148% year-over-year to $2.7 billion, excluding the Juniper Networks acquisition, networking growth was only about 10%, highlighting the need for the company to focus on sustainable growth in its core business post-acquisition.
- Supply Chain Challenges: Management indicated that supply constraints, particularly in memory, will affect the speed at which orders convert to revenue, with elevated costs expected to persist into 2027, which may pressure profit margins and warrant caution from investors.
See More
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See More
