HPE stock rose 0.8% amid mixed market signals. The company unveiled new AI infrastructure solutions for service providers at Mobile World Congress 2026, including Juniper PTX Series routers with improved power efficiency and the 90/9 Advantage financing program offering no payments for 90 days on AI projects. Fourth-quarter results showed $9.7 billion in revenue with 14% year-over-year growth and $6.8 billion in AI system orders for fiscal year. However, analyst sentiment remained divided. Morgan Stanley lowered its price target to $23 from $25 citing cyclical concerns and memory chip cost headwinds. Wells Fargo maintained a Hold rating with a $26 target, while J.P. Morgan maintained a Buy rating. The stock also faced headwinds from the Trump administration's announcement of new global tariffs under the Trade Act of 1974, creating uncertainty for companies reliant on international supply chains.
Read full analysisHPE stock rose 0.8% amid mixed market signals. The company unveiled new AI infrastructure solutions for service providers at Mobile World Congress 2026, including Juniper PTX Series routers with improved power efficiency and the 90/9 Advantage financing program offering no payments for 90 days on AI projects. Fourth-quarter results showed $9.7 billion in revenue with 14% year-over-year growth and $6.8 billion in AI system orders for fiscal year. However, analyst sentiment remained divided. Morgan Stanley lowered its price target to $23 from $25 citing cyclical concerns and memory chip cost headwinds. Wells Fargo maintained a Hold rating with a $26 target, while J.P. Morgan maintained a Buy rating. The stock also faced headwinds from the Trump administration's announcement of new global tariffs under the Trade Act of 1974, creating uncertainty for companies reliant on international supply chains.
Hewlett Packard Enterprise sells enterprise IT infrastructure including servers, storage, and networking equipment to businesses and governments worldwide. The company recently completed its $14 billion acquisition of Juniper Networks, significantly expanding its networking portfolio and shifting its revenue mix toward higher-margin segments. HPE's heavy exposure to networking hardware margins has made it particularly vulnerable to the memory chip cost pressures flagged by Cisco and echoed by multiple analyst downgrades in recent weeks.