Why Patience Is Key for Investors Betting on HPE's AI Strategy

Hewlett-Packard Enterprise Company (NYSE:HPE) is one of the AI Stocks Gaining Attention on Wall Street. On September 4, Raymond James analyst Simon Leopold raised the price target on the stock to $30.00 (from $29.00) while maintaining a Strong Buy rating.

The rating affirmation follows HPE’s F3Q25 earnings report which reflected a beat with mixed guidance. AI platform sales are poised for a steep quarter-to-quarter drop, but this is considered normal.

The addition of Juniper is already contributing to the margins, and an analyst meeting in October will further reflect upon the company’s strategy and financial outlook.

“Net, business is tracking well; however, the outlook includes a +30% q/q decline from AI platforms; lumpiness is business as usual. Investors will need to be patient to appreciate the longer term; HPE will host an analyst meeting in October where we expect it will disclose its strategy and financial outlook. Juniper’s inclusion is already helping and contributes to the improving operating margin outlook. HPE will play an increasing roll in AI initiatives with the inclusion of Juniper and the broadening market. We include HPE within the context of an AI networking basket. Our EPS estimates change modestly, and our target goes to $30.”

Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing systems, AI software, and data storage solutions for running complex AI workloads.

While we acknowledge the potential of HPE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks Gaining Attention on Wall Street and 10 Hot AI Stocks to Keep on Your Radar.

Disclosure: None.