JNPR - HPE: AI Gains But Also Faces Uncertainty (Earnings Preview)
2024-05-27 07:07:19 ET
Summary
- HP Enterprise's stock surged 20% after expanding partnership with Nvidia, but has since fluctuated in the $16 to $19 range.
- A potential merger with Juniper Networks could increase market share in networking and hybrid cloud, as well as opportunities in AI networking.
- Revenue declines have led to reduced sales expectations, but the company remains underpriced compared to the IT sector.
- Still, it is not a buy due to uncertainties concerning the demand for networking.
- This thesis which comes ahead of the company's second-quarter 2024 results on June 4 emphasizes the need for more visibility before investing.
HP Enterprise's ( HPE ) stock surged by around 20% after it expanded its partnership with Nvidia ( NVDA ) and since it has been oscillating in the $16.5 to $18.5 range as shown in the chart below....
HPE: AI Gains But Also Faces Uncertainty (Earnings Preview)