By reuters.com
Publication Date: 2025-12-04 00:00:00
Dec 4 (Reuters) – Hewlett Packard Enterprise (HPE.N)open a new tab forecast first-quarter revenue below Wall Street estimates on Thursday as it sees a drop in AI server revenue as customers moved their orders to the second half of the year.
Shares HPE, which provides AI-optimized servers running on high-end Nvidia (NVDA.O)open a new tab processors, fell more than 9% in expanded trade.
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“In cloud and AI, we continue to see the impact of non-performance and AI server revenue and expect a sequential decline in AI server revenue with the majority of AI deals in the second half of the year,” Chief Financial Officer Marie Myers said on a post-earnings call.
HPE expects demand for AI servers to remain uneven as some of its largest sovereign customers are placing orders with long lead times, which may push shipments into future periods, Myers added.
The company expects revenue in the range of $9 billion to $9.4 billion for the first quarter, compared with analysts’ average estimate of…