Shares of Hewlett Packard Enterprise (NYSE: HPE) surged higher after the company reported strong second-quarter results.
Not to be confused with former parent HP Inc., ticker symbol HPQ, which sells computers and printers, Hewlett Packard Enterprise is a major player in the enterprise data center and computing market, positioning itself as an edge-to-cloud hybrid infrastructure leader
Like rival Dell, the company is benefiting from a surge in artificial intelligence (AI) infrastructure spending. With the stock up big, let’s take a closer look at its results to see whether or not it’s too late to buy the AI stock. Riding the AI wave HPE credited its strong growth and outlook to the convergence of networking and security in the data center space, as it helps customers scale their AI infrastructure with secure, high-performance networking.
It is seeing particular strength in the enterprise and sovereign spaces, while noting that its customers are investing heavily in agentic AI and inference. For its fiscal Q2, which ended April 30, the company’s revenue surged 40% to $10.7 billion, helped by its acquisition of Juniper Networks. Cloud and AI revenue jumped 23% to $7.7 billion, while networking revenue rose 148%, or 10% on a normalized basis, to $2.7 billion.