Hewlett Packard Enterprise (HPE) Stock Jumps 8% After Lenovo Posts Record Quarter

TLDR

• HPE stock surged over 8% after Lenovo reported record revenue of $26.9 billion, up 43% year-over-year
• Goldman Sachs maintained a Buy rating with a $75 price target; Morgan Stanley upgraded to Overweight with a $69 target
• HPE’s last earnings showed $0.79 EPS and $10.68 billion in revenue, both beating estimates; revenue up 40% year-over-year
• Institutional investors own 80.78% of HPE; analyst consensus is “Moderate Buy” with an average target of $69.80
• Sector peers Dell Technologies and HP Inc. also rose in pre-market following Lenovo’s results

HPE stock opened at $58.78 on Thursday, up more than 8% on the day. The move was driven largely by Lenovo’s blowout quarterly results, which investors read as a positive signal for HPE’s server and AI infrastructure business.

Hewlett Packard Enterprise Company, HPE

Lenovo posted total revenue of $26.9 billion for its most recent quarter, a 43% jump year-over-year and the strongest quarter in the company’s history. Its infrastructure solutions division nearly doubled in size. That kind of beat, well above analyst consensus, told the market that enterprise demand for AI computing hardware is holding strong.

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