Demand for AI servers has surged as huge tech corporations and startups race to deploy generative AI services, corresponding to ChatGPT, which require immense computing energy.
The surge in GenAI has boosted demand for HPE’s AI-optimized servers, powered by Nvidia processors, which might run advanced functions. HPE built-in Nvidia’s newest GPUs into its server portfolio in 2025.
“Buyer demand stretched broadly throughout our portfolio and was notably robust in our Server and Networking segments,” CEO Antonio Neri stated.
HPE’s acquisition of Juniper expands its networking enterprise, a section that typically grows quicker in comparison with conventional {hardware}. HPE accomplished the $14 billion acquisition in early July.
The corporate added veteran tech trade government Robert Calderoni to its board in July, reaching a truce with activist investor Elliott Investment Management, one in all HPE’s greatest shareholders with a stake exceeding $1.5 billion.
For the third quarter ended July 31, HPE reported income of $9.14 billion, forward of analysts’ common estimate of $8.53 billion, based on information compiled by LSEG.
Server income elevated by 16% year-over-year to $4.9 billion, whereas networking income surged 54% to $1.7 billion throughout the quarter.
The server maker initiatives fourth-quarter income between $9.7 billion and $10.1 billion, exceeding analysts’ expectations of $9.54 billion.
HPE now expects income development of 14% to 16% in fiscal year 2025, in contrast with its prior forecast of development of seven% to 9%.
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