HP gains ahead of earnings

Shares of Hewlett Packard Enterprise are up nearly 6% today, reaching new all-time highs during the session, as investors began positioning themselves for the release of results for the second quarter of fiscal year 2026.

The market expects the company to report earnings of aprox. $0.53 per share on revenues around $9.75 billion USD.

The primary driver of the increased expectations is a wave of optimism surrounding AI infrastructure. HP is benefiting from positive sentiment following very strong results from Dell Technologies, which were seen as confirmation of strong demand for AI-optimized servers.

An additional boost may have been the announcement of the new ProLiant Compute DL394 Gen12 server, based on the NVIDIA Vera CPU - intended for use in agentic AI. 

Investor enthusiasm is shared by investment firms, including Morgan Stanley, Citigroup, and Bernstein, who point to growing demand for servers and the company's favorable positioning in the AI infrastructure and networking segment.

Since the start of the year, HP's stock price has gained over 80%. However, if the company were to catch up with the valuations of many sector leaders, the potential for upward movement remains open. The market will focus almost entirely on AI infrastructure during the earnings conference.

Beating expectations in the AI/Cloud segment will confirm the investment thesis, while even a small disappointment could trigger a double-digit correction.

HPE.US (D1)

With such a vertical upward trend, one of the few tools indicating potential price levels is the Fibonacci retracement, whose levels point to potential resistance around $47-48. Source: xStation5