VenkatP
Physician, Growth & Value Stock Investor
Hewlett Packard Enterprise has a better rerating setup than Dell because last year's Juniper acquisition adds networking, which deserves higher multiples than hardware, as Arista's do, and can improve the quality and margin mix of the whole business. Dell still has the stronger AI-server earnings engine, so HPE is the better investment at today's valuation rather than the better company. x.com x.com x.com x.com
Hewlett Packard Enterprise is a reasonably priced execution story, less levered to memory prices and gross AI spending. Juniper is showing early revenue synergies and some hidden product wins, gross margins look healthy and expanding, and the valuation is in the dirt versus Dell. A flurry of positive Iran headlines from Trump could also lift the whole market. x.com
Hewlett Packard Enterprise should get dual boosts from ANT and NVIDIA data-center buildouts. It has the lowest PEG and strongest year-over-year growth in the communications space. It is time to buy again, with the low 80s as the target. x.com
Hewlett Packard Enterprise's 30% jump looks like dot-com bubble behavior, since the stock trades at about -250 times earnings. Even after a strong earnings report it remains a poor-quality company; Dell and Cisco earned their multiple expansion with great fundamentals and undervaluation. A post the author replies to argues HPE, which sells servers and networking, is a laggard rerating toward the leaders. x.com x.com
Hewlett Packard Enterprise's real story is networking, which the market is not giving nearly enough credit at the current valuation. With Juniper, HPE challenges Ciena and Cisco in optical networking and Arista in AI fabric; Juniper's optical, routing and Mist AI tech completes a stack from AI servers to interconnects, driving margin expansion from the low-20% range and a re-rating toward a networking power. Integration speed and margin resilience are the real upside trigger beyond AI demand. … Show more
Dell is the best AI infrastructure integrator, and HPE could do well too, with an AI backlog of about $6B after a decent pullback. x.com
Dell and HPE are priced on an AI-server story rather than their businesses. Like HP Inc., which just posted weak results on rising memory costs and thinner PC margins, they are cyclical hardware companies dependent on enterprise capex, yet their shares diverged only because of the AI-server label. Data center demand is real, but the premium has run far ahead of it. Such pricing can last long in a liquid, risk-on market, as in 1999 and 2021, so a drop is not imminent. x.com
Hewlett Packard Enterprise deserves a higher stock price, even though its growth is not near Dell's. Per @Brian14168136, the stock is still very cheap and would be about $100 at Dell's multiple. x.com
Hewlett Packard Enterprise is a great play on AI networking and servers, helped by its Juniper acquisition last year. Ahead of earnings, a reply the post engages with notes HPE has traded much like Dell over the past eight quarters with solid profitability, though a roughly 100% three-month run could leave it overbought. x.com x.com
Dell and HPE probably don't work right now because so many eyes are on both. They are the two stocks @NickSchmidt says stand out above everything else by a mile and could be the SanDisk and Micron of the next cycle, and @MJ52084254 dislikes how widely both are watched. x.com x.com
Hewlett Packard Enterprise's raised guidance lifts out-year estimates, not just sentiment, which may set up a multi-quarter estimate-revision story. Fiscal Q3 was a record beat at about $12.21B revenue, with FY26 guidance raised and FY27 EPS growth lifted to 16–20% from 12–16% on accelerating AI orders and Juniper synergies. Analysts, Citi among them, upgraded on AI backlog outpacing supply. The stock is at a low-teens forward P/E; risks are dilutive AI server margins and a 120% run priced in. … Show more
