11 Stocks on Jim Cramer’s Radar Right Now

8. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders: 58

Hewlett Packard Enterprise Company (NYSE:HPE) is a provider of solutions that allow customers to capture, analyze, and act on data effectively. The company operates through various segments, offering a variety of products, including general-purpose and specialized servers, advanced computing systems, and storage solutions. Talking about the company, Cramer said that it will hold an analyst day in the week, which will be “dedicated to its AI efforts, which are substantial and underestimated” and he also thinks it will be a “needle mover”.

Hewlett Packard (NYSE:HPE) reported a 3% year-over-year increase in revenue in the second quarter, reaching $7.2 billion, which surpassed analyst expectations. The adjusted EPS stood at $0.42, also exceeding consensus forecasts.

On September 25, Barclays upgraded Hewlett Packard (NYSE:HPE) stock to Overweight from Equal Weight with a price target of $24, up from $20. The firm believes that the company will benefit from growth in artificial intelligence server revenues and improvements in its storage segment.

Additionally, the recent acquisition of Juniper Networks is expected to contribute positively to the company’s overall performance. Barclays sees early signs of recovery in enterprise spending, suggesting that investing in the company presents a compelling opportunity, particularly given that its stock has not yet fully reflected the potential benefits of AI advancements compared to other hardware competitors.

Recently, Bernstein analysts, led by Toni Sacconaghi, highlighted that the AI prospects for the company will continue to be closely linked to training and Tier 2 hyperscalers in the near term, which typically offer low profits, rather than on-premise inferencing, where profit margins are expected to be significantly higher.