HPE(US:HPE) Zhi Tong Cai Jing·2025-09-01 08:45Core Viewpoint - HPE is expected to report a decline in earnings per share for Q3, while revenue is projected to grow significantly, reflecting the mixed performance in the AI server market [1] Group 1: Financial Performance - Analysts predict HPE's Q3 earnings per share will be $0.43, a 14% decrease year-over-year, with revenue expected to reach $8.78 billion, a 13.9% increase from the previous year [1] - The consensus forecast for earnings per share has been adjusted upward by 1.95% in the last 30 days [1] - HPE's AI systems segment has $3.2 billion in unfulfilled revenue, with strong growth anticipated in Q3 due to the deployment of Blackwell NVL72 [5] Group 2: Market Dynamics - The demand for AI tools has driven sales for high-performance server manufacturers like HPE, Dell, and Supermicro, although profitability concerns remain due to reliance on expensive processors from Nvidia and AMD [1] - Dell reported a decline in AI server sales, with orders dropping from $12.1 billion to $5.6 billion in the last quarter, raising concerns about the profitability of AI servers [1][2] Group 3: Strategic Moves - HPE's acquisition of Juniper Networks is expected to enhance its performance in the AI and networking sectors, with analysts projecting a significant increase in earnings per share for FY2026 [2][3] - Morgan Stanley upgraded HPE's rating to "overweight" following the acquisition, indicating optimism about growth in AI and networking due to increased demand for related hardware and services [2][3] Group 4: Industry Outlook - Analysts express a generally optimistic sentiment towards the tech hardware sector, with expectations of increased enterprise technology spending, particularly in AI and networking [3] - Nvidia's performance has been viewed positively, suggesting potential benefits for companies like Dell and HPE, as demand for AI computing capabilities is expected to grow [4]