Hewlett Packard Enterprise HPE stock saw an uptick in pre-market trading on Tuesday following the announcement of a collaboration with NVIDIA NVDA to launch a suite of AI solutions called NVIDIA AI Computing by HPE.
What Happened: At the time of writing, the stock was trading 2.47% higher at $22.38 after Tuesday’s close of $21.84, as per Benzinga Pro data.
The portfolio comprises HPE Private Cloud AI, which integrates NVIDIA AI computing, networking and software with HPE's AI storage and computing, and the HPE GreenLake cloud. This solution provides enterprises with an energy-efficient, speedy, and flexible pathway for developing and deploying generative AI applications.
Why It Matters: This collaboration comes on the heels of HPE’s return to revenue growth reported in June, driven by the momentum in AI. HPE’s server business saw a boost from the availability of AI chips from NVIDIA, leading to an 18% year-over-year growth in server revenue and AI systems revenue exceeding $900 million.
Furthermore, this trend presents a significant growth opportunity for tech companies like NVIDIA, which recently became the world’s most-valued company beating Microsoft and Apple, and is expected to generate nearly $10 billion in revenue for Jensen Huang-led company this year. The demand for domestic AI infrastructure has been on the rise, with governments worldwide investing heavily in this area.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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