
AI server stocks are clawing back part of Thursday's post-midterm sell-off, and the bounce is uneven across the group. Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) stock is at $28.73, up 6% in early trading.
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 | 2.51 |
| Price-to-Sales (TTM) | 1.40 |
| EV/Revenue | 1.923 |
| EV/EBITDA | 11.89 |
| Quarterly Earnings Growth (YoY) | 410.20% |
| Quarterly Revenue Growth (YoY) | 33.70% |
| Shares Outstanding | $1.33B |
| Float | $1.32B |
| % Insiders | 0.24% |
| % Institutions | 91.52% |
Volatility is currently expanding

AI server stocks are clawing back part of Thursday's post-midterm sell-off, and the bounce is uneven across the group. Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) stock is at $28.73, up 6% in early trading.

The post-midterm unwind in AI hardware extended into a second straight day of losses, and the biggest server names are taking the hardest hits. Dell Technologies (NYSE:DELL | DELL Price Prediction) stock is at $325.

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A strong quarter wasn't enough to protect AI server makers, as margin questions and voter opposition against data centers weighed on the group. Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) stock is at $30.

Not every company tied to artificial intelligence (AI) is attracting capital equally. While investors have grown more “selective” toward software names after sharp selloffs in stocks such as Fortinet and have questioned the economics of heavily leveraged AI infrastructure builders, money continues to flow toward companies selling the tools, software, and systems that power the AI boom.

AI volatility is shaking markets, but value still shines. CVE, MU, SNDK, HPE and HMC pass a high earnings yield screen and carry Zacks Buy ratings.

Hewlett Packard Enterprise earns a strong buy rating, edging out Dell (DELL) due to its AI/data center pure-play positioning. HPE's superior gross margins (36.62%) and LFCF margin (11.32%) highlight its financial strength versus DELL's more diversified, lower-margin business. Both HPE and DELL benefit from surging AI data center spending, but DELL's 30% exposure to personal computing faces headwinds from workforce downsizing.

Hewlett Packard Enterprise (HPE) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

AER, HPE and BWFG made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on November 3, 2026.

The Juniper acquisition expands Hewlett Packard Enterprise's AI networking TAM from ~$40B to $135B, while enhancing market share and supporting networking growth opportunities at a CAGR of ~50%. The excellent FY2026/FY2027 growth guidance has been well supported by the strong order momentum, growing backlog, and richer profit margins. Recent meltdown triggers HPE's cheaper P/E of 14.39x and 3Y PEG of 0.34x, while offering a rich upside potential of >40% to my LTPT of $78.70.
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