13 Cheap AI Stocks to Buy According to Analysts

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2. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders: 66

Average Upside Potential: ~28.1%

Forward P/E as of May 12: ~9.4x

Hewlett Packard Enterprise Company (NYSE:HPE) remains a critical player in the broader AI landscape as it provides the platforms, infrastructure, and services required to create and deploy AI applications at scale. Meta Marshall from Morgan Stanley maintained a “Hold” rating on the company’s stock with a price objective of $14.00. The company booked $1.6 billion in new AI system orders in Q1 2025, resulting in the cumulative AI system orders of $8.3 billion. The Blackwell GPU generation of products accounted for ~70% of its new order intake during Q1 2025. Hewlett Packard Enterprise Company (NYSE:HPE) exited the quarter with $3.1 billion in AI systems backlog, reflecting a rise of 29% Q-o-Q.

On the revenue front, Hewlett Packard Enterprise Company (NYSE:HPE) saw $900 million in AI systems revenue during Q1 2025. Moving forward, the company anticipates significantly higher AI revenue conversion in H2 2025, thanks to the transition to Blackwell GPUs. The company has also exhibited optimism about the shipment of its first NVIDIA GV200 systems. Elsewhere, Hewlett Packard Enterprise Company (NYSE:HPE) saw momentum in the enterprise AI market. In Q1 2025, the company’s enterprise AI orders went up by 40% YoY, fueled by increased conversion from the proof of concept phase.

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