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spending on HPE’s artificial intelligence (AI) and other products.The analysts noted that their “checks signaled healthy enterprise spending across the board in the quarter, led by anything AI compute or networking related, followed by client devices (strong PC refresh), and then servers/storage, with networking growth inflecting positively for the first time in several quarters.”HPE Price Target Raised to $28 as Corporate AI Spending AcceleratesThe firm looks forward to HPE’s Analyst Day on October 15, as the most important upcoming catalyst for the company.“We are upgrading HPE to Overweight (from Equal-Weight) with a new $28 price target, or 11x our new FY26 EPS of $2.51. Our thesis is straight-forward – with the closure of JNPR, we see 18% upside to FY26 Consensus EPS, with EPS growing to $2.70-3.00 in FY27, and believe that as the market comes to better understand nearly half of HPE’s business is networking, inclusive of more AI exposure (JNPR in xAI cluster), HPE’s multiple will re-rate above the current 8x multiple. Our 11x target P/E multiple doesn’t even assume HPE garners a peer average multiple, and yet we still see 33% upside to shares from here. The biggest risks to our call are (1) execution — deals always look better on paper than in real-life and the risk here is that this deal is no different / the synergies mgmt outlined don’t materialize as expected, (2) JNPR/Aruba underperforms outside of the xAI exposure as competition is intense in networking and campus upgrade exposure is relatively limited (with risk of JNPR CEO leaving eventually), and (3) FCF and/or capital returns continue to disappoint vs. expectations.”Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing systems, AI software, and data storage solutions for running complex AI workloads.While we acknowledge the potential of HPE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.READ NEXT: 10 Must-Watch AI Stocks for Investors and 10 AI Stocks Analysts Are Tracking CloselyDisclosure: None.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,511.75 -5.75 (-0.09%)Dow Futures45,633.00 -73.00 (-0.16%)Nasdaq Futures23,730.75 -38.25 (-0.16%)Russell 2000 Futures2,381.80 -0.40 (-0.02%)VIX14.43 -0.42 (-2.83%)Gold3,471.00 -3.30 (-0.09%)PortfolioSign in to access your portfolioSign inTop gainersPSTG Pure Storage, Inc. 80.54 +19.68 (+32.34%)SNOW Snowflake Inc. 241.00 +40.61 (+20.27%)BILL BILL Holdings, Inc. 49.20 +7.57 (+18.18%)TCOM Trip.com Group Limited 75.03 +9.74 (+14.92%)TIGR UP Fintech Holding Limited 12.81 +1.24 (+10.72%)Top losersARX Accelerant Holdings 21.57 -7.72 (-26.36%)TLX Telix Pharmaceuticals Limited 10.15 -1.95 (-16.12%)HMY Harmony Gold Mining Company Limited 12.61 -2.06 (-14.04%)HRL Hormel Foods Corporation 25.22 -3.80 (-13.09%)COO The Cooper Companies, Inc. 64.58 -9.52 (-12.85%)Most activeWBA Walgreens Boots Alliance, Inc. 11.98 0.00 (0.00%)NVDA NVIDIA Corporation 180.17 -1.43 (-0.79%)OPEN Opendoor Technologies Inc. 4.2700 +0.2500 (+6.22%)LCID Lucid Group, Inc. 2.0700 -0.0100 (-0.48%)RGTI Rigetti Computing, Inc. 16.58 +1.19 (+7.73%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersMRVL Marvell Technology, Inc. 77.23 +2.44 (+3.26%)AFRM Affirm Holdings, Inc. 79.99 +2.40 (+3.09%)DELL Dell Technologies Inc. 134.05 +1.55 (+1.17%)IREN IREN Limited 23.04 +0.69 (+3.06%)ULTA Ulta Beauty, Inc. 530.63 -3.18 (-0.60%)Top economic events