Microsoft<\/a>, Amazon and Meta \u200bare expected to spend at least $630 billion to build AI infrastructure this year, which would boost demand for server and data center equipment from vendors such as Dell, HPE and Super Micro Computer.<\/p>\n“Demand for our products and solutions was strong, with orders \u200cincreasing double digits year over \u2060year across all segments,” HPE CEO Antonio Neri said in a statement.<\/p>\n
Shares of the company rose around 2% in extended trading on \u2060Monday. The stock has fallen around 9% so far this year, underperforming rival Dell’s 16.4% gains.<\/p>\n
HPE jostles with Dell and Super Micro Computer in a highly competitive market \u200bas they \u200bnavigate surging memory chip costs due to \u200bthe buildout of AI infrastructure, forcing \u200ccompanies to increase prices in a bid to offset cost pressures.<\/p>\n
Almost all servers have memory chips that hold data and instructions, keeping processors running at high speed, which is paramount for AI applications.<\/p>\n
The company expects quarterly revenue to be between $9.6 billion and $10.0 billion, above the analysts’ average estimate of $9.58 billion, according to data compiled \u200cby LSEG.<\/p>\n
HPE said its AI backlog exceeded $5 billion \u200bin the first quarter, with enterprise and sovereign \u200bcustomers representing 64% of the cumulative \u200border mix. It had an AI backlog of $4.7 billion in \u200cthe fourth quarter.<\/p>\n
Revenue rose around 18% to $9.30 \u200bbillion for the quarter \u200bended January 31, missing estimates of $9.33 billion. Its adjusted EPS of 65 cents exceeded estimates of 59 cents.<\/p>\n
HPE raised its fiscal 2026 adjusted EPS \u200bforecast to $2.30 to $2.50, compared with \u200cits prior expectations of $2.25 to $2.45.<\/p>\n
The company also raised its annual revenue growth \u200bexpectations for the networking segment to 68% to 73%.<\/p>\n
(Reporting by Jaspreet \u200bSingh in Bengaluru; Editing by Alan Barona)<\/p>\n","protected":false},"excerpt":{"rendered":"March 9 (Reuters) – Hewlett Packard Enterprise forecast second-quarter revenue above Wall Street estimates on Monday, betting on…\n","protected":false},"author":2,"featured_media":376633,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,9499,289,290,3002,18,31877,19,17,54417,82,90100],"class_list":["post-376632","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-infrastructure","tag-artificial-intelligence","tag-artificialintelligence","tag-dell","tag-eire","tag-hewlett-packard-enterprise","tag-ie","tag-ireland","tag-super-micro-computer","tag-technology","tag-wall-street-estimates"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116201698242344879","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/376632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=376632"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/376632\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/376633"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=376632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=376632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=376632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}