2024-06-06 09:30:43 ET
Summary
- Hewlett Packard Enterprise is well-positioned for growth as AI infrastructure expands across enterprise customers, paired with the imminent general compute refresh cycle.
- Despite challenges in the competitive landscape and margin pressures, Hewlett Packard Enterprise is expected to see modest revenue growth and improved margins in the coming years as a result.
- The supply chain constraints for sourcing Nvidia H100s have loosened up, allowing for HPE to convert $900mm of AI server backlog into revenue.
Hewlett Packard Enterprise Company ( HPE ) is well-positioned for a new growth cycle despite the near-term headwinds faced across general IT infrastructure, such as traditional servers and storage. As the firm further entrenches operations into next-generation AI hardware, I believe that HPE may realize near-term strength in AI server followed by general server, storage, and networking as enterprises enter their next hardware refresh cycle....
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Hewlett Packard Enterprise Has A Long AI Runway (Rating Upgrade)