- Shares of Hewlett Packard Enterprise (HPE) jumped 18% in premarket trading on Friday.
- The stock was up after Dell posted strong quarterly results.
- HPE will release its quarterly earnings report on June 1.
Shares of Hewlett Packard Enterprise (HPE) jumped 18% on Friday in premarket trading following strong quarterly results by Dell.
Super Micro Computer also surged 10% following Dell's quarterly results, Investing.com reported. Dell's stock climbed almost 40% after the company raised its annual profit and revenue forecasts on the back of strong demand for its Nvidia-powered AI servers.
On Thursday, Dell increased its AI server revenue outlook for fiscal 2027 from the previous estimate of $50 billion to approximately $60 billion. The tech giant also raised its annual revenue forecast from a range of $138 billion-$142 billion to an updated estimate of $165 billion to $169 billion. The firm has profited from data centre investments by companies like Amazon and Alphabet, as well as improved supply chain management and price increases.
The strong performance from Dell led to a price increase in shares of other companies in the AI infrastructure space. HPE and Super Micro Computer gained in sympathy trading as investors expected similar demand trends across the sector.
HPE To Release Second Quarter Earnings
HPE will release its second-quarter fiscal 2026 results after market close on Monday, June 1.
The company expects revenues of $9.6 billion to $10 billion for the quarter, as per Zacks. The firm expects its non-GAAP earnings to be in the range of 51 cents to 55 cents per share.
The firm is expecting positive results due to disciplined execution, strong demand trends and progress in Juniper integration. Rising customer orders across servers, storage and networking are likely to reflect positively in the results as well.
Hewlett Packard Enterprise's networking and AI-focused portfolio has gained momentum over the past few months. Its Networking segment has emerged as a major growth driver after the acquisition of Juniper Networks. In the first quarter of fiscal 2026, networking revenues jumped 152% year over year, with robust demand for wireless, routing and data centre switching solutions driving the momentum.
Not just that, the firm recorded strong demand for its PTX/MX routing products and Juniper QFX switches. In the first quarter of fiscal 2026, demand for WiFi 7 access point volumes also jumped over 10 times year over year, and is likely to have remained so in the upcoming results.
