Stock Market Today, May 29: Hewlett Packard Enterprise Surges After Dell AI Server Results Spark Sector Rally

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NYSE: HPE

Hewlett Packard Enterprise

Today's Change

(12.64%) $4.83

Current Price

$43.04

Key Data Points

Market Cap

$51B

Day's Range

$41.52 - $44.58

52wk Range

$17.02 - $44.58

Volume

84.8M

Avg Vol

17.6M

Gross Margin

29.93%

Dividend Yield

1.43%

Hewlett Packard Enterprise (HPE +12.64%), which develops intelligent solutions across servers, hybrid cloud, and networking, closed Friday at $43.09, up 12.76%. The stock moved higher after **Dell’s **strong AI server results spurred a sympathy rally in AI infrastructure names. Investors are watching HPE’s upcoming Q2 earnings on Monday and long-term AI-driven server demand. Trading volume reached 66.7 million shares, about 260% above its three-month average of 18.5 million shares. Hewlett Packard Enterprise IPO'd in 2015 and has grown 348% since going public.

How the markets moved today

The S&P 500 added 0.23% to finish Friday at 7,581, while the Nasdaq Composite rose 0.22% to close at 26,976. Within communication equipment and related infrastructure, peers were also strong, with Dell Technologies closing at $420.91 (up 32.76%) and NetApp finishing at $174.29 (up 22.39%) on AI and cloud optimism.

What this means for investors

Hewlett Packard Enterprise (HPE) and Dell combine to form a quasi-duopoly in the enterprise data center and server hardware industry. So when Dell reported blowout Q1 earnings yesterday that rocketed past analysts’ expectations, it was also deemed great news for HPE. Dell grew revenue by 88% and EPS by 214%, and announced a $51 billion backlog for its AI server unit.

Analysts view this booming AI demand as a “tide that will lift all boats,” rather than a sign that Dell is taking share from HPE, which has prompted the latter’s soaring share price alongside Dell’s 33% spike today. Analysts expect HPE’s revenue to rise 28% in Q2.