
Worries over how the AI infrastructure boom gets paid for are rippling through hardware stocks again. Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) stock is down 5% at $55.
The Hewlett Packard Enterprise Company (HPE) is an American multinational enterprise information technology company based in Houston, Texas, United States.
| Revenue (TTM) | $41.87B |
| Gross Profit (TTM) | $15.33B |
| EBITDA | $6.89B |
| Operating Margin | 12.60% |
| Return on Equity | 10.90% |
| Return on Assets | 2.64% |
| Revenue/Share (TTM) | $31.38 |
| Book Value | $19.96 |
| Price-to-Book | 3.12 |
| Price-to-Sales (TTM) | 1.86 |
| EV/Revenue | 2.311 |
| EV/EBITDA | 14.29 |
| Quarterly Earnings Growth (YoY) | 410.20% |
| Quarterly Revenue Growth (YoY) | 33.70% |
| Shares Outstanding | $1.33B |
| Float | $1.32B |
| % Insiders | 0.24% |
| % Institutions | 91.20% |
Volatility is currently contracting

Worries over how the AI infrastructure boom gets paid for are rippling through hardware stocks again. Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) stock is down 5% at $55.

Barclays downgraded Hewlett Packard Enterprise this week over growing skepticism about how quickly corporate customers will adopt artificial intelligence hardware. Analysts warned that enterprise IT spending on AI remains modest, with memory component costs driving server revenue growth rather than new AI deployments.

Dell Technologies (NYSE:DELL | DELL Price Prediction) is leading a fresh retreat in artificial intelligence (AI) hardware, as doubts about the timing of enterprise spending hit server makers hardest. In morning trading, Dell stock is at $465.31, down 8%.

Some of this year's hottest stocks are taking a hit Wednesday after downgrades from Barclays.

Investors target stocks that have been on a bullish run. Stocks like HPE, ARW, KSS and GCT are seeing price strength, and the momentum is likely to continue.

Dell Technologies (NYSE:DELL | DELL Price Prediction) stock is down 8% to $526.86 in morning trading after Barclays cut its rating on the shares to Equal Weight from Overweight.

Shares of Dell Technologies (DELL), Hewlett Packard Enterprise (HPE) and NetApp (NTAP) fell in trading on Wednesday after Barclays downgraded all three stocks, citing elevated valuations and a lack of meaningful artificial intelligence (AI)-driven growth. Barclays analyst Tim Long lowered the ratings to Equal Weight from Overweight, adopting a more cautious outlook on IT hardware companies exposed to enterprise spending.

Hewlett Packard Enterprise (HPE) has surged following my July 2026 call, driven by a $6.3 billion AI backlog and attractive valuation. HPE's transformation into an AI powerhouse is accelerating, positioning the company as a must-own in the current market. Despite strong performance, critics continue to underestimate HPE's evolving business and strategic AI focus.

HPE stock, Dell Technologies, and NetApp are downgraded. All three stocks have surged this year.

Hewlett Packard Enterprise's NVIDIA partnership strengthens its enterprise AI offerings, challenging SMCI and DELL.
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