Hewlett Packard Enterprise (HPE) experienced a significant boost in its stock price by 15 percent in after-hours trading due to a surge in orders for AI systems. In the second quarter of fiscal year 2024, revenue rose to $7.204 billion, beating analyst expectations. The server division grew by 18 percent to $3.9 billion, with AI systems revenue doubling from the previous quarter.
HPE’s CEO, Antonio Neri, expressed optimism about the future, highlighting the accelerating demand for AI systems across all customer segments. The company shipped $900 million in AI servers in the quarter, with a profit of 11 percent. Improved GPU availability and faster delivery times are expected to boost revenue in the second half of the year.
Enterprise orders for AI systems increased, with the number of customers nearly tripling year-over-year. GreenLake adoption and improvements in traditional infrastructure also contributed to HPE’s positive outlook. The company raised its revenue forecast for the second half of the fiscal year, predicting growth of 1 to 3 percent for the full year.
While some business units, like Hybrid Cloud and Intelligent Edge, experienced declines, overall performance was strong. HPE’s focus on AI systems and technology-as-a-service offerings drove revenue growth and increased customer engagement. Financial services revenue also saw an increase, contributing to a group-wide pre-tax profit of $426 million.
Analysts view HPE’s results positively, noting the recovery from previous challenges and the company’s strategic focus on capitalizing on AI demand. By leveraging AI to offset other market pressures, HPE is positioned for continued growth and success in the evolving technology landscape.
Article Source
https://www.theregister.com/AMP/2024/06/05/hpe_q2_2024/
