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HPE Stock Surges on AI Order and Raised Forecasts
3 Oct
Summary
- HPE's stock rose 7.8% following positive investor day updates.
- A $1.2 billion AI server order was secured from cloud provider Vultr.
- Fiscal 2027 networking revenue growth forecast was raised to high-teens/low-20s.
Hewlett Packard Enterprise (HPE) saw its stock price climb by 7.8% during afternoon trading. This surge was primarily driven by positive momentum generated at the company's recent networking investor day. Amplifying this effect were upward revisions to Wall Street price targets and a U.S. jobs report that indicated slower-than-expected growth, stimulating a broader market rally.
During its investor day, HPE announced an enhanced fiscal 2027 networking revenue growth forecast, projecting it to be between high-teens and low-20s percent, an increase from the prior 14% to 17% prediction. Additionally, the company secured a significant $1.2 billion order from Vultr, a cloud infrastructure provider, for AMD-based artificial intelligence server racks equipped with Juniper networking switches.
Citigroup notably raised its price target for HPE shares to $92 from $76, maintaining a Buy rating. This optimism stems from confidence in sustained demand and the expansion of AI infrastructure orders. The softer September U.S. jobs report, with only 29,000 nonfarm payroll additions, also supported the stock by lowering Treasury yields and increasing investor appetite for technology hardware.
