Benzinga - by Surbhi Jain, .
Amidst the burgeoning landscape of Artificial Intelligence (AI) investments, Hewlett Packard Enterprise Co (NYSE:HPE) stands out as a poised player, leveraging its broad-based portfolio and strategic partnerships to capitalize on emerging opportunities.
Recently, insights gleaned from a management meeting by JPMorgan shed light on Hewlett Packard’s strategic positioning within the AI sector, setting the stage for potential growth.
Hewlett Packard – Well Positioned To Leverage The Upcoming AI Cycle
Samik Chatterjee, CFA, at JPMorgan, highlighted Hewlett Packard Enterprise’s (HPE) strategic positioning within the AI investment landscape. Chatterjee notes that AI investment, currently in its early stages, is primarily driven by Hyperscalers.However, he underscored Hewlett Packard’s potential to leverage this trend, particularly with anticipated investments from sovereigns, and governments.
“HPE expects its strong relationship with the Governments around the globe to position it favorably to benefit from the investment cycle,” Chatterjee wrote.
Hewlett Packard’s proprietary liquid cooling technology as a significant differentiator, providing the company with a competitive advantage in the infrastructure market. Moreover, he suggested that the company’s GreenLake offering could further incentivize on-premise AI investments, aligning with the expected preference of Enterprises for data security.
Let’s delve deeper into the technical analysis of Hewlett Packard stock to gauge its current trajectory and future prospects.
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Hewlett Packard Stock Made A Golden Cross
Hewlett Packard stock hasn’t witnessed a secular trend over the past year. YTD, the stock is up 5.65%, about 11.78% over the past year, and investors have been patient with the gain. It has now made a Golden Cross, signaling that a bullish trend may be kicking in.Chart: Benzinga Pro
The 50-day simple moving average (SMA) has cross over the 200-day SMA, indicating bullishness gaining momentum on Wall Street for the stock.
Chart: Benzinga Pro
Shorter-term moving averages provide further insight. The stock is trading above its 20-day and 50-day SMA suggesting bullish sentiments. This reflects positive momentum and long-term growth potential for Hewlett Packard stock.
Chart: Benzinga Pro
Additionally, the MACD indicator is positive at 0.34, indicating that the stock maybe poised for further upward movement. However, the Relative Strength Index (RSI) suggests that the stock is currently in the Neutral territory at 57.80, signaling the potential for a temporary pullback or consolidation before resuming its upward trajectory.
Finally, with the stock trading in the upper band, the Bollinger Bands too, indicate bullish sentiments, further corroborating Hewlett Packard stock’s favorable technical outlook and potential for continued growth.
Hewlett Packard’s technical analysis aligns with its strategic positioning within the AI landscape and broader market dynamics.
Despite short-term fluctuations, the overall trajectory appears bullish, supported by favorable technical indicators and a robust fundamental outlook. As AI investments continue to proliferate, the company stands to benefit from its innovative offerings and market differentiation.
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Image: Shutterstock
Latest Ratings for HPE
| Mar 2022 | Bernstein | Upgrades | Market Perform | Outperform |
| Jan 2022 | Morgan Stanley | Maintains | Equal-Weight | |
| Jan 2022 | Barclays | Upgrades | Equal-Weight | Overweight |
View the Latest Analyst Ratings
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