Billionaire Paul Singer Was Right About Hewlett Packard Enterprise (HPE)

We just covered the Top 10 Stock Picks of Billionaire Paul Singer. Hewlett Packard Enterprise Co (NYSE:HPE) ranks #6 (see Top 5 Stock Picks of Billionaire Paul Singer).

Elliott’s Stake: $652,911,510

HPE is surging as the company posted strong quarterly results and raised its full-year outlook. It’s proving to be one of the most profitable bets of Singer.

HPE is well-positioned for the AI revolution. It operates at the infrastructure layer that powers AI workloads. It builds AI-optimized servers, storage systems, and high-performance computing clusters. These are the physical machines used to train and run large AI models. HPE’s core stack includes compute, storage, and high-speed networking. This forms the backbone of AI infrastructure. All three components are seeing rising demand. Companies are scaling GPU-heavy workloads and building larger AI clusters.

GreenLake is another major growth catalyst for HPE. It is HPE’s hybrid cloud platform, which delivers infrastructure on a consumption-based model. GreenLake serves around 50,000 customers. This reflects strong enterprise adoption.

Ariel Investments’ Global Fund stated the following regarding Hewlett Packard Enterprise Company (NYSE:HPE) in its Q4 2025 investor letter:

“We initiated a position in Hewlett Packard Enterprise Company (NYSE:HPE), a global provider of enterprise hardware solutions including servers, networking and storage. The company recently completed its acquisition of Juniper Networks, strengthening its position in networking, a higher-margin business that improves HPE’s overall financial profile. Despite this strategic move, the stock has lagged due to cautious guidance and a history of inconsistent execution. However, we think upcoming product refreshes in servers, growth in AI-driven infrastructure and networking demand tied to data centers could serve as catalysts. Additionally, activist involvement in the name adds a layer of accountability and potential upside. In our view, HPE offers an attractive opportunity for investors willing to look beyond short-term sentiment and focus on long-term transformation (Click Here to Read the Letter in Detail).”

Paul Singer of Elliott Management

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