15 AI News Updates That Broke The Internet

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7. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders: 64

Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing (HPC) systems, AI software, and data storage solutions for helping to run complex AI workloads. On December 6, Hewlett Packard Enterprise Company (NYSE:HPE) was revisited by a Wall Street analyst Toni Sacconaghi from Bernstein who maintained a “Hold” rating along with a $21.00 price target. Sacconaghi has given a hold rating due to mixed signals in its financial outlook.

Even though Q4 results slightly exceeded expectations, there remains a cautious outlook due to the pending Juniper acquisition and the modest projection for IT spending in 2025, also leading to a lack of full-year guidance. Moreover, AI server revenues did meet expectations, but there were weak net bookings and a declining AI backlog suggesting challenges ahead. Moreover, HPE had “debooked” a significant portion of server orders, implying potential risks in its order book concentration and customer creditworthiness. Lower R&D spending and weak cash flow compared to income are some more factors for the firm’s cautious approach.

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