Hewlett Packard Enterprise (HPE) shares surged to an all-time closing high of $43.04 on Friday, gaining 12.64% in a session marked by heavy trading volume. The stock also touched an intraday peak of $44.58, as investor enthusiasm for artificial intelligence server hardware continued to build following robust earnings from rival Dell Technologies.
Dell's Results Spark AI Server Rally
The rally in HPE shares was ignited by Dell's latest quarterly report, which revealed AI server revenue of $16.1 billion, surpassing its PC business for the fourth consecutive quarter. This performance underscored the accelerating shift toward AI infrastructure, lifting shares of other server makers, including Super Micro Computer, which rose 11.6% on Friday. The broader market also benefited, with the Dow Jones, S&P 500, and Nasdaq all closing at record highs, while the S&P 500 notched its ninth straight weekly gain.
HPE Fiscal Q2 Earnings Preview
HPE is set to release its fiscal second-quarter results after the market closes on Monday, June 1. The company has guided for revenue in the range of $9.6 billion to $10.0 billion and adjusted earnings per share between $0.51 and $0.55. Analysts surveyed by Seeking Alpha expect adjusted EPS of $0.53 on revenue of $9.77 billion. Investors will be closely watching AI server orders, networking segment performance, and updates on the integration of Juniper Networks, which HPE acquired in July 2025 for an undisclosed sum.
In the first quarter, HPE reported revenue of $9.3 billion, up 18% year-over-year, with networking sales surging 151.5% thanks to the Juniper acquisition. However, the Cloud & AI segment saw a slight decline of 2.7%. CEO Antonio Neri highlighted the company's outperformance in networking, while CFO Marie Myers noted faster-than-expected synergies from the Juniper and Catalyst deals.
Market Context and Risks
The AI server trade has been a major driver of stock market gains in 2026, with companies like HPE and Dell benefiting from surging demand for hardware used in training and deploying large language models. However, the rally has also raised expectations, leaving little room for error. HPE's server business is smaller than Dell's, and any signs of softening AI demand, slower Cloud & AI sales, or rising component costs could trigger a sharp reversal in the stock.
Dell COO Jeff Clarke recently noted that memory chips remain supply-constrained, a factor that could impact margins across the industry. HPE's results and management commentary on Monday will be critical in determining whether the current valuation is justified.
Upcoming Events
Following the earnings release, HPE management, including CEO Antonio Neri, CFO Marie Myers, and IR head Paul Glaser, will host a conference call at 5 p.m. ET. The company is also scheduled to present at the Evercore TMT conference on Tuesday and Bank of America's technology conference on Wednesday.
With the stock hitting a record high ahead of the report, the market is betting that HPE will deliver strong AI server momentum. The question now is whether the numbers and forward guidance can support the elevated share price.
