HPE Jumps 19% After $10.68 Billion Quarter Tops Estimates on AI Server Demand
Updated
Updated · CNBC · Jun 2
HPE Jumps 19% After $10.68 Billion Quarter Tops Estimates on AI Server Demand
3 articles · Updated · CNBC · Jun 2
Summary
79 cents in adjusted EPS and $10.68 billion in revenue crushed expectations of 53 cents and $9.79 billion, sending HPE shares up 19% for their best day on record.
Server revenue reached $5.45 billion versus $4.66 billion expected as AI-related demand accelerated, with CEO Antonio Neri citing agentic AI and triple-digit growth in traditional server orders.
Wall Street raised targets sharply after the results: Morgan Stanley lifted its target to $71 from $33, while Bernstein moved to $62 from $35 but kept a Market Perform rating.
The rally extends an AI-infrastructure trade already boosted by Dell's recent blowout, though analysts say the next debate is whether server demand can stay this strong as prices rise.