Hewlett Packard Enterprise Company HPE announced last week that it extended a partnership with NVIDIA Corporation NVDA to build an enterprise computing solution that will help organizations adopt generative artificial intelligence (AI) applications faster. The company believes that the new to-be-developed solution will be available for orders during the first quarter of 2024.
The enterprise computing solution will be built with a full-stack AI tuning and inferencing solution from the two companies. This will remove the complexities of developing and deploying generative AI infrastructure for organizations. Therefore, enterprises of any size will be able to quickly customize foundation models using private data and deploy production applications anywhere, from edge to the cloud.
The to-be-developed computing solution will enable enterprises to rapidly embrace and transition to deploying generative AI applications. The planned computing solution will integrate HPE Machine Learning Development Environment Software, HPE ProLiant Compute, HPE Ezmeral Software and HPE Cray Supercomputers with the NVIDIA AI Enterprise software suite, including the NVIDIA NeMo framework.
With the latest collaboration with NVIDIA, HPE intends to offer its customers a comprehensive AI-native solution that will help them develop and deploy AI models with a portfolio of pre-configured solutions. The strategy will further boost the company’s reach into the generative AI space.
Hewlett Packard Enterprise Company Price and Consensus
Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company Quote
Hewlett Packard views AI, the Industrial Internet of Things and distributed computing as the next major markets. It has been pursuing acquisitions to focus more on high-margin hybrid IT models that leverage on-premises and cloud-computing power. In early 2023, HPE expanded its AI-at-scale solution portfolio with the acquisition of the San Francisco-based startup delivering software based on open-source technology to automate reproducible machine learning pipelines that target large-scale AI applications — Pachyderm.
Pachyderm’s reproducible AI software improves HPE’s existing AI-at-scale offerings by efficiently maximizing the machine learning initiatives of data scientists, optimizing their infrastructure cost and ensuring that data is reliable and safe anywhere in the AI ecosystem. HPE’s AI-at-scale combines its leading supercomputing technologies that are foundational for optimized AI infrastructure and the HPE Machine Learning Development Environment to aid enterprise users in training more accurate AI models quickly and at scale on several of the world’s fastest supercomputers purpose-built for demanding AI workloads.
HPE has been benefiting from strong executions in clearing backlogs, improved supply chain and increased customer acceptance. The company’s efforts to shift its focus to higher-margin offerings like Intelligent Edge and Aruba Central Hyperconverged Infrastructure are aiding its bottom-line results.
Zacks Rank & Stocks to Consider
Currently, NVIDA carries a Zacks Rank #2 (Buy), while Hewlett Packard has a Zacks Rank #3 (Hold). Shares of NVDA and HPE have risen 220% and 5.8%, respectively, year to date (YTD).
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC and Aspen Technology, Inc. AZPN, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved a penny north to 44 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to 95 cents in the past seven days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have surged 65.5% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have dropped 3.6% YTD.
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