Hewlett Packard Enterprise Faces Decline Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2025
0mins
Should l Buy HPE?
Source: NASDAQ.COM
Hewlett Packard Enterprise Co (HPE) saw its stock drop by 4.38%, hitting a 20-day low, as the broader market faced significant declines with the Nasdaq-100 down 1.55% and the S&P 500 down 1.36%.
Despite HPE's strong position in the AI infrastructure market, holding six of the world's top ten supercomputers and benefiting from its acquisition of Cray, the stock's decline is attributed to sector rotation as investors react to overall market weakness. Analysts have expressed a cautious outlook on IT hardware demand, which may impact HPE's performance despite its growth potential in AI systems.
The implications of this decline suggest that while HPE is well-positioned in a growing sector, external market pressures are influencing investor sentiment. The company's valuation remains attractive, trading at a price-to-earnings ratio of 8.0, but the current market environment may require patience from investors.
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Analyst Views on HPE
Wall Street analysts forecast HPE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HPE is 27.13 USD with a low forecast of 21.00 USD and a high forecast of 31.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 22.710
Low
21.00
Averages
27.13
High
31.00
Current: 22.710
Low
21.00
Averages
27.13
High
31.00
About HPE
Hewlett Packard Enterprise Company is a global technology company focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge to cloud. Its customers range from small-and-medium-sized businesses to large global enterprises and governmental entities. Its segments include Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other. Its Server segment offerings consist of general-purpose servers for multi-workload computing, workload-optimized servers, and integrated systems. Its Hybrid Cloud segment offers a range of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service space. The Networking segment develops and sells high-performance networking and security products and services. Its Financial Services segment provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increase in Advanced Process Share: Three-nanometer chips accounted for 28% of total wafer revenue, five-nanometer for 35%, and seven-nanometer for 14%, totaling 77% of revenue from the most advanced processes, highlighting the robust demand driven by AI applications and TSMC's technological edge.
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- Platform Benefits: The new platform, built on HPE Private Cloud AI and co-developed with NVIDIA, enables dynamic resource allocation, optimizes network performance, and reduces internal development cycles, allowing for faster product and service launches that enhance customer experience.
- Commitment to Data Sovereignty: This collaboration underscores 2degrees' commitment to data sovereignty, ensuring that New Zealand customer and operational data is stored locally, complying with increasingly complex global data regulations and strengthening the company's competitive position in the market.
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See More
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