HPE (HPE) Stock; Rises as Morgan Stanley Turns Bullish on AI Infrastructure Demand
TLDRs;
- Morgan Stanley upgrades HPE with a $71 price target
- HPE networking revenue surges 148.2% amid AI demand
- HPE second-quarter revenue jumps 40% year over year
- HPE shares face risks after strong annual gains
Hewlett Packard Enterprise (NYSE: HPE) shares gained on Monday after Morgan Stanley upgraded the stock, with the investment bank pointing to growing demand for enterprise infrastructure as companies expand their artificial intelligence capabilities.
HPE stock advanced 2.73% to close at $54.67 on August 10, after reaching an intraday high of $56.85. The move followed Morgan Stanley’s decision to raise its rating on the company from Equal-Weight to Overweight and increase its price target from $69 to $71.
At the new target, Morgan Stanley sees almost 30% potential upside from HPE’s latest closing price. The bullish call comes after a strong earnings performance and a sharp acceleration in networking revenue, strengthening the case that AI-related infrastructure spending could remain an important growth driver for the company.
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