HPE falls after flagging shortages hitting AI server demand
BUZZ-HPE falls after flagging shortages hitting AI server demand ** Shares of AI server maker Hewlett Packard Enterprise HPE.N fall 4.7% to $49.38 premarket
** HPE flags ongoing shortages of memory, NAND, CPUs and drives, which limit its ability to meet strong AI-related demand
** Piper Sandler cuts price target to $57 from $63
** "We believe the business is less exposed to where the end-markets are seeing strength, & there are concerns around peaking revenue & margins given guide," analysts at Piper Sandler say in a note
** HPE raises FY26 and FY27 revenue and profit forecasts after Q3 results beat Wall Street estimates
** HPE expands collaboration with Oracle ORCL.N to support the software company's global AI infrastructure
** 16 of 24 brokerages rate the stock "buy" or higher, while 8 rate it "hold"; median PT stands at $67
** As of last close, HPE stock up 115.8% YTD
(Reporting by Darshan Kumar in Bengaluru)
Recent news on Hewlett Packard Enterprise
See all newsAI-linked data center stocks slide as Democrats crack Republican strongholds
Brief: HP And Asus Shift Some PC Making Back To China, Nikkei Reports
US STOCKS-Nasdaq leads Wall Street gains as SpaceX, Super Micro boost AI sentiment
US STOCKS-Nasdaq leads Wall Street to higher close as SpaceX, Super Micro boost AI sentiment
Brief: Schneider Electric, Nvidia & HPE Announce Strategic Collaboration To Accelerate Physical AI For Process Industries