TECH - AI Momentum Fuels HPE's Return To Revenue Growth But Profitability Has Yet To Enter The Picture | Benzinga
On Tuesday, Hewlett Packard Enterprise (NYSE: HPE) reported its fiscal second quarter results that surpassed estimates as its server business got a helping hand in the form of availability of AI chips from Nvidia Corporation (NASDAQ: NVDA). Although earnings fell compared to last year’s comparable quarter, the server and storage manufacturer, HPE lifted its full-year guidance.
Fiscal Second Quarter Highlights
For the quarter ended on April 30th, HPE reported revenue grew 3% to $7.2 billion, surpassing FactSet’s estimate of $6.8 billion, while earnings dropped 19% to 42 cents a share.
Server revenue grew 18% YoY to $3.9 billion, while AI systems revenue exceeded $900 million, fueled by growing demand for AI servers. Similarly, Dell Technologies Inc (NYSE: DELL) recently reported it sold $1.7 billion of AI systems in its most recent quarter. Dell recorded its AI systems sales multiplied 2.1 on a sequential basis and as many as 10 times on a YoY basis. Like HP, Dell revealed its margins suffered by those AI server sales or more precisely, Dell ...