HPE Q1 mixed, cuts outlook as it ‘could have executed better’
Hewlett Packard Enterprise saw server revenue surge in a mixed first quarter, but the company cut its outlook for the second quarter and fiscal year.
Hewlett Packard Enterprise saw server revenue surge in a mixed first quarter, but the company cut its outlook for the second quarter and fiscal year.
The Department of Justice sued to block Hewlett Packard Enterprise's planned acquisition of Juniper arguing that the combination will hamper competition in the enterprise wireless networking market.
HPE reported better-than-expected fourth quarter results as server revenue surged due to AI demand. HPE also said that it expects its acquisition of Juniper Networks to close in early 2025.
Hewlett Packard Enterprise launched an AMD-powered system designed for complex AI model training. The HPE ProLiant Compute XD685 leverages 5th Gen AMD EPYC processors and AMD Instinct MI325X accelerators.
Hewlett Packard Enterprise said its third quarter was driven by AI systems as revenue was up 10% from a year ago.
AI Begins And Ends With Nvidia
Despite the massive buzz on AI, only a few core companies that power the Age of AI will succeed. The high capital costs of research and development investment, the time required to take a product to market, and the ability to cross competitive moats create a massive barrier to entry. In fact, only a few vendors have shown significant profits in AI:
Hewlett Packard Enterprise and Nvidia teamed up to launch a set of private cloud offerings and integrations designed for generative AI workloads. Nvidia AI Computing by HPE will be available in the fall.
Last quarter, HPE took its lumps over supply chain issues that hampered its AI server sales. In the second quarter, AI systems revenue more than doubled sequentially.
Hewlett Packard Enterprise posted a mixed first quarter where sales fell short of expectations due to what CFO Marie Myers said were "challenges brought by the softening of the networking market and GPU deal timing."