HPE Stock Trades at Record High On Strong AI Server Sales
- Company earlier gave a revenue forecast that beat estimates
- Server business helped by availability of Nvidia AI chips
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Hewlett Packard Enterprise Co. shares surged as much as 16% to trade at a record high after the company reported better-than-expected revenue fueled by sales of servers built for artificial intelligence work.
Fiscal second-quarter revenue increased 3.3% to $7.2 billion, the company said Tuesday in a statement. Wall Street projected a 2% decline year over year to $6.82 billion, according to data compiled by Bloomberg. Profit, excluding some items, was 42 cents per share in the period ended April 30. Analysts, on average, estimated 39 cents.