By Yahoo Finance
Publication Date: 2026-06-02 02:29:00
Hewlett Packard Enterprise (HPE) was poised to open more than 25% higher on Tuesday after the maker of servers and networking products reported record second-quarter profits, driven by a boom in corporate investments in artificial intelligence infrastructure.
The company also raised its full-year outlook and accelerated its long-term financial goals by two years, predicting that demand for its servers will remain strong well into 2027.
“Traditional server orders are up by triple digits as customers continue to modernize their computing infrastructure and invest in AI inference,” CEO Antonio Neri said during the company’s earnings conference call Monday afternoon.
“Orders more than doubled, significantly outpacing revenue, resulting in a backlog of orders from record labels,” he added.
Unlike COVID, when customers were double-booking, Neri said, “We don’t see that at all. We don’t have cancellations.”
While training AI models requires expensive GPUs, AI inference…
