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Evercore ISI Removes HPE From Tactical Outperform List, Keeps Long-Term Bull Case

Hewlett Packard Enterprise Company (NYSE:HPE) is included among the 13 Top Tech Stocks Paying Consistent Dividends.

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On December 11, Evercore ISI removed Hewlett Packard Enterprise Company (NYSE:HPE) from the firm’s “Tactical Outperform” list after the company released its October-end quarterly results last week. Though there was “some noise” around the fiscal Q4 numbers and January quarter revenue guidance that came in below the Street, Evercore said its long-term bull thesis remains “largely intact.” Out-year estimates were left mostly unchanged. The firm continues to rate the stock Outperform with a $28 price target.

Hewlett Packard Enterprise Company (NYSE:HPE) reported fiscal Q4 2025 earnings on December 4. It was a record quarter marked by profitable growth and tight execution. Revenue reached $9.7 billion, up 14% year over year. Non-GAAP operating profit rose 26%.

Stronger margins flowed through to cash generation. Free cash flow came in at $1.9 billion for the quarter, above expectations. That wrapped up what management described as a solid fiscal 2025. The company also pointed to a sharp pickup in orders late in the quarter. That’s usually a good sign. It suggests demand under the hood remains healthy, even if headline numbers create debate.

Based on that momentum, Hewlett Packard Enterprise Company (NYSE:HPE) raised its fiscal 2026 non-GAAP diluted EPS guidance. It also lifted the midpoint of its free cash flow outlook. CEO Antonio Neri confirmed the planned sale of HPE’s remaining 19% stake in H3C for about $1.4 billion. The deal is expected to close in the first half of 2026. Proceeds are slated to support plans to bring net leverage down to around 2x by the end of fiscal 2027.

Neri also said the company has completed the acquisition of Juniper Networks. The deal strengthens HPE’s position in networking and aims to create a new industry leader. Integration work is well underway, with unified teams and technologies already in place. Feedback from employees, customers, and partners has been positive so far.

Hewlett Packard Enterprise Company (NYSE:HPE) is a global IT company focused on edge-to-cloud solutions. Its portfolio spans servers, storage, networking, software, and services designed to help businesses run and scale their operations.

While we acknowledge the potential of HPE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HPE and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Long Term US Stocks to Buy Now and 12 Best Dogs of the Dow to Invest in.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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