On August 13, Hewlett Packard Enterprise rose 4.42% in regular trading, trading at $61.98/share, with turnover of $64.89 million. The stock extended gains following Morgan Stanley's sector-wide upgrade of IT hardware and specific endorsement of HPE.
Morgan Stanley recently upgraded HPE from Equalweight to Overweight with a $69 price target, while raising the broader IT hardware sector rating. The firm's analysts noted that surging memory chip prices are creating a \"fear of missing out on procurement,\" prompting enterprises to accelerate purchases of servers and storage equipment to lock in pricing and avoid supply shortages. AI-related capacity expansion is driving server and storage growth to historic highs, with earnings estimates for hardware stocks still having upward revision potential.
The bullish sentiment is reinforced by multiple institutional endorsements. Goldman Sachs maintains a Buy rating with a $75 target, while Citigroup raised its target from $70 to $74, citing robust AI infrastructure demand. Peer Dell Technologies gained 5.03% and Super Micro Computer rose 3.47% on the same day, reflecting broad strength across the AI hardware sector.
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