Hewlett Packard Enterprise Co. (NYSE:HPE) stock was under pressure Thursday as investors took profits following the stock’s historic rally after earnings. The decline came amid a broader sell-off in technology stocks.

AI Sector Pullback Adds Pressure

Hewlett Packard stock faced pressure as investors reassessed expectations across the artificial intelligence infrastructure sector following earnings from Broadcom Inc. (NASDAQ:AVGO).

Broadcom maintained its long-term AI revenue outlook rather than raising it, disappointing investors who had hoped for a stronger forecast after the company’s recent rally.

The update sparked profit-taking across AI-linked technology stocks and weighed on sentiment toward companies tied to data center, networking and enterprise infrastructure spending.

With valuations across the AI trade already reflecting aggressive growth expectations, investors used Broadcom’s outlook as an opportunity to lock in gains.

The resulting pullback spread across the technology sector and added pressure to HPE, which has been one of the market’s strongest-performing infrastructure names over the past year. The stock has gained nearly 197% over the past 12 months.

The broader technology sector was also under pressure, with the Nasdaq falling 1.29% on Thursday while the S&P 500 slipped 0.18%. Despite healthy market breadth, investors rotated away from higher-growth technology stocks, leaving HPE among the sector laggards.

HPE Stock Remains In A Strong Uptrend

Despite Thursday’s decline, HPE continues to trade well above key moving averages. The stock sits 43.3% above its 20-day simple moving average of $36.88 and 112.7% above its 200-day simple moving average of $24.84.

The longer-term technical picture remains bullish. The 20-day moving average remains above the 50-day moving average, while a golden cross formed in April when the 50-day average moved above the 200-day average.

The main concern is momentum. HPE’s relative strength index, or RSI, stands at 87.56. An RSI above 70 is generally considered overbought. Readings near 90 often signal that a stock may need to consolidate or pull back before resuming its advance.

The stock is also approaching resistance near its June peak and 52-week high. Key resistance sits at $64.25, while initial support is near the 20-day moving average at $36.88.

Hewlett Packard Analyst Outlook

Analysts remain broadly bullish. The consensus rating is Buy, with an average price forecast of $69.69. Recent analyst actions include:

  • Goldman Sachs reaffirmed its Buy rating and raised its price forecast to $79 on June 3.
  • Argus Research maintained a Buy rating and lifted its price forecast to $70 on June 3.
  • Evercore ISI reiterated its Outperform rating and increased its price forecast to $70 on June 2.

HPE Stock Price Activity: Hewlett Packard shares were down 4.46% at $52.69 during premarket trading on Thursday, according to Benzinga Pro data.

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