Hewlett Packard Enterprise (HPE) is forecasting second-quarter revenue to exceed Wall Street estimates, driven by significant demand for its artificial intelligence-powered servers equipped with Nvidia chips.
The company anticipates quarterly revenue to range from $9.6 billion to $10.0 billion, surpassing the analysts' average estimate of $9.58 billion.
This surge is bolstered by major tech companies like Alphabet, Microsoft, Amazon, and Meta, which are projected to invest at least $630 billion this year in AI infrastructure, consequently increasing demand for server and data center equipment from vendors including HPE.
In the first quarter, HPE reported a total revenue increase of approximately 18 percent, reaching $9.30 billion, slightly below the $9.33 billion estimate.