HPE Strengthens Networking Business Through Juniper Acquisition

Hewlett Packard Enterprise Company (NYSE:HPE) ranks among the best performing S&P 500 stocks in the last 3 months. On September 3, Hewlett Packard Enterprise Company (NYSE:HPE) reported third-quarter revenue that surpassed Wall Street forecasts due to robust demand in its networking and server divisions. The rise in GenAI has increased demand for HPE’s AI-optimized servers, which are capable of running complicated applications and are backed by Nvidia processors.

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By acquiring Juniper, Hewlett Packard Enterprise Company (NYSE:HPE) also strengthened its networking division, which typically experiences faster growth than traditional hardware.

Moreover, the company reached a truce with activist investor Elliott Investment Management, one of HPE’s largest shareholders with a holding over $1.5 billion, and recruited seasoned tech sector executive Robert Calderoni to its board in July.

Hewlett Packard Enterprise Company (NYSE:HPE) provides data services globally through its several divisions, including Corporate Investments, Compute, HPC & AI, Storage, Intelligent Edge, and Financial Services. Additionally, the company offers software-defined infrastructure (SDI) solutions to help businesses with software development and deployment, automation, network management, and storage.

While we acknowledge the potential of HPE to grow, 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 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.