6. Hewlett Packard Enterprise Co (NYSE:HPE)
Elliott’s Stake: $652,911,510
Hewlett Packard Enterprise Co (NYSE:HPE) is set to benefit from the AI revolution because it is linked to the infrastructure layer that powers AI workloads. It builds AI-optimized servers, storage systems, and high-performance computing clusters, which are the physical machines used to train and run large AI models.
HPE’s core stack—compute (servers), storage (data systems), and high-speed networking—forms the backbone of AI infrastructure, and all of these components are seeing rising demand as companies scale GPU-heavy workloads and build larger AI clusters.
Another major growth catalyst for Hewlett Packard Enterprise Co (NYSE:HPE) is GreenLake, its hybrid cloud platform that delivers infrastructure on a consumption-based model. GreenLake has scaled to an annualized revenue run-rate approaching $3.5 billion (FY2026 guidance trajectory) and now serves around 50,000 customers, reflecting strong enterprise adoption. The reason this model is in demand is the key here: companies are shifting away from large upfront hardware purchases toward “as-a-service” infrastructure so they can scale computing resources.
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.”
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 the cheapest AI stock.
Click to continue reading and see the Top 5 Stock Picks of Billionaire Paul Singer.
Disclosure: None. Follow Insider Monkey on Google News.
