2024-06-05 10:33:40 ET
Summary
- HPE is still a dirt-cheap stock to get, considering its exposure to AI.
- Headwinds in the Intelligent Edge segment are likely to disappear in H2.
- HPE remains an interesting AI play on different levels, including edge computing, hybrid cloud, servers, and hyperscalers.
Hewlett Packard Enterprise ( HPE ) posted better than expected Q2 FY24 earnings of $0.42 per share (non-GAAP) and revenue worth $7.2bn, beating consensus estimates for $0.39 EPS and $6.83bn in revenues. The bright spot was certainly the performance of the server segment, where revenues rose by 18% y/y and 15% q/q after a slump by 23% y/y in Q1. In particular, the company reported a doubling of AI system revenues to $0.9bn from $0.4bn in Q1, which was the highlight of the Q2 report....
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Hewlett Packard Enterprise: Q2 Earnings Show Server Demand Is Finally Rebounding