What's Going On With Hewlett Packard Enterprise Shares Friday?

Hewlett Packard Enterprise Company HPE shares are trading higher on Friday. BofA Securities analyst Wamsi Mohan maintained a Buy rating at a price target of $24.00.

On Thursday, at HPE’s AI Day, the company introduced the industry’s first 100% fanless direct liquid cooling system, enhancing energy and cost efficiency for large-scale AI deployments.

Antonio Neri, president and CEO of HPE, stated, “The architecture we unveiled today uses only liquid cooling, delivering greater energy and cost-efficiency advantages than the alternative solutions on the market. In fact, this direct liquid cooling architecture has the potential to yield a 90% reduction in cooling power consumption as compared to traditional air-cooled systems.”

Apart from this, the company unveiled the HPE ProLiant Compute XD685, optimized for AI model training.

Equipped with 5th Gen Advanced Micro Devices, Inc.‘s AMD EPYC processors and AMD Instinct MI325X accelerators, it enables fast, secure, and energy-efficient AI clusters for tasks such as large language models, natural language processing, and multi-modal training.

The analyst says that the key takeaway from the event is that Hewlett Packard’s strong engineering legacy in supercomputing and 100% direct liquid cooling (DLC) positions it as a differentiator.

As data centers increasingly adopt liquid cooling for greater power efficiency and higher-density solutions, HPE stands to benefit, adds the analyst.

The analyst sees upside potential from Juniper synergies, structurally higher margins, and growth opportunities in AI.

Related: Hewlett Packard Analyst Gives 5 Reasons To Be Bullish As Juniper Deal Promises To ‘Shift Focus’

Investors can gain exposure to the stock through First Trust S&P 500 Diversified Dividend Aristocrats ETF KNGZ and First Trust Exchange-Traded Fund First Trust S&P 500 Diversified Free Cash Flow ETF FCFY.

Price Action: HPE shares are up 0.92% at $20.73 at the last check Friday.

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