Will Nokia Partnership and RAN Automation Push Transform Hewlett Packard Enterprise’s (HPE) AI Growth Narrative?

• On October 2, 2025, Nokia announced it had entered a global licensing agreement with Hewlett Packard Enterprise (HPE) to integrate HPE's RAN Intelligent Controller with Nokia's MantaRay SMO platform, deepening their collaboration in AI-driven radio access network automation; the agreement also saw the transfer of the associated HPE development team to Nokia Mobile Networks.
• This deal positions HPE as a key technology provider to leading telecom players and underscores its growing presence in AI-powered network automation.
• We'll examine how HPE's expanded technology role in AI-driven telecom automation impacts its long-term growth narrative and competitive positioning.

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Hewlett Packard Enterprise Investment Narrative Recap

To be a shareholder in Hewlett Packard Enterprise, you need confidence in its ability to expand in AI-driven networking and high-performance infrastructure, particularly as it integrates acquisitions like Juniper. The recent licensing deal with Nokia reinforces HPE's technology leadership but does not materially alter the core short-term catalyst: successful Juniper integration remains the biggest driver, while execution risk on that front continues to be the main uncertainty for near-term performance.

Among recent announcements, the launch of new Juniper Networking capabilities in August is most relevant to the Nokia agreement, as both highlight HPE’s push into autonomous, AI-centric network solutions. These moves broaden HPE’s reach in enterprise and telecom, aiming to capture share in higher-value software and services while providing crucial proof points for its margin expansion ambitions.

Yet, investors should also keep in mind that, while HPE is gaining momentum in next-generation network automation, the risk around integrating its major Juniper deal is far from resolved...

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

Hewlett Packard Enterprise's outlook anticipates $44.4 billion in revenue and $2.7 billion in earnings by 2028. This is based on revenue growing at 10.3% per year and a $1.6 billion increase in earnings from the current $1.1 billion.

Uncover how Hewlett Packard Enterprise's forecasts yield a $25.82 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Seven private investors from the Simply Wall St Community estimate HPE’s fair value between US$17.90 and US$48.08, with several seeing a significant discount to market price. As these outlooks diverge sharply, be mindful that integration execution risk could weigh heavily on future earnings and your own assessment of HPE’s potential.

Explore 7 other fair value estimates on Hewlett Packard Enterprise - why the stock might be worth 27% 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 5 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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