HPE falls after flagging shortages hitting AI server demand
HPE•Forecasts and collaboration with Oracle
HPE raised FY26 and FY27 revenue and profit forecasts after its third-quarter results beat Wall Street estimates.
The company also expanded its collaboration with Oracle ORCL.N to support the software company's global AI infrastructure.
Sixteen of 24 brokerages rate the stock "buy" or higher, while eight rate it "hold"; the median price target stands at $67. As of the last close, HPE stock was up 115.8% year to date.
HPE shares fall after premarket warning on AI server shortages
Shares of AI server maker Hewlett Packard Enterprise HPE.N fell 4.7% to $49.38 premarket after the company flagged ongoing shortages of memory, NAND, CPUs and drives, which limit its ability to meet strong AI-related demand.
Piper Sandler cut its 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 said in a note.
