Top 9 Trending AI News Investors Probably Missed

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1. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders: 66

Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides IT products, solutions, and services. It focuses on helping businesses connect, protect, analyze, and act on data and applications from edge to cloud. The company also delivers a full-stack solution for running an AI-powered business. Its AI software helps make data AI-ready, automate and scale complex data pipelines. Nevertheless, the stock remains under pressure after the company announced on March 6 that tariffs, weak margins on server sales and execution issues in 2025 will hurt its profit.

According to Woo JIN Ho, an analyst at Bloomberg Intelligence, HPE’s weak outlook implies underlying problems that might go beyond tariff impact and weak margins on artificial intelligence systems. Chief Executive Officer Antonio Neri has already confirmed that the company’s server unit faces issues attributed to discounting sales and higher-than-realized issues. A build-up in older generation semiconductors cloudily dents profit.

While artificial intelligence has fueled a strong demand for powerful HPE servers, the business line is struggling to drive the bottom line due to lower margins. The situation is exacerbated by the need to equip the servers with expensive chips from Nvidia.

While we acknowledge the potential of Hewlett Packard Enterprise Company (NYSE:HPE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HPE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article was originally published at Insider Monkey.

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