Can HPE’s (HPE) AI Security Bet Redefine Its Competitive Edge in Enterprise IT?

• At Black Hat USA 2025, Hewlett Packard Enterprise announced a major expansion of its cybersecurity and data protection portfolio, introducing AI-driven network security features, integrations with partners like CrowdStrike, and new hardware solutions such as the Alletra Storage MP X10000 for modern data protection.
• This multi-layered approach highlights HPE's commitment to integrating AI and zero trust technologies across its networking and hybrid cloud offerings, aiming to enhance enterprise protection and system resiliency.
• We'll explore how this focus on AI-enabled security and data protection may influence Hewlett Packard Enterprise's investment outlook and analyst assumptions.

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Hewlett Packard Enterprise Investment Narrative Recap

To be a shareholder in Hewlett Packard Enterprise today, you need to believe in the company’s ability to capitalize on AI-driven security and hybrid cloud trends, especially if its integration of Juniper Networks is successful. The recent launch of AI-powered cybersecurity and data protection solutions meaningfully supports HPE’s positioning in these growth areas but does not materially reduce the regulatory risk tied to the Juniper merger, which remains a key short-term catalyst and uncertainty.

HPE’s expanded global alliance with Kyndryl to deliver HPE Private Cloud AI through NVIDIA-backed solutions stands out as especially relevant. These collaborations are closely aligned with HPE’s emphasis on higher-margin AI workloads and cloud services, potentially supporting earnings forecasts if the execution matches management’s expectations and integration hurdles are managed.

Yet, in contrast to these opportunities, investors should be aware of ongoing legal and regulatory uncertainty around the Juniper deal, as ...

Read the full narrative on Hewlett Packard Enterprise (it's free!)

Hewlett Packard Enterprise is projected to reach $41.4 billion in revenue and $4.1 billion in earnings by 2028. This outlook reflects an annual revenue growth rate of 9.4% and an increase in earnings of $2.7 billion from the current $1.4 billion.

Uncover how Hewlett Packard Enterprise's forecasts yield a $23.07 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Six private investor fair value estimates for HPE from the Simply Wall St Community range from US$18.54 to US$33.84 per share. While many focus on earnings potential from AI and cloud integration, ongoing DOJ scrutiny of the Juniper acquisition could have broader implications for HPE’s growth trajectory, considering all these viewpoints is important before forming your own outlook.

Explore 6 other fair value estimates on Hewlett Packard Enterprise - why the stock might be worth 11% less than the current price!

Build Your Own Hewlett Packard Enterprise Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hewlett Packard Enterprise research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Hewlett Packard Enterprise research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hewlett Packard Enterprise's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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