Hewlett Packard Enterprise Company (NYSE:HPE) rose nearly 4% on Wednesday as investors rotated back into technology hardware stocks. The move came even as the broader market was mixed, with the Nasdaq gaining 0.37% and the S&P 500 slipping 0.04%.

HPE, NVIDIA To Power Vultr’s Next Phase Of AI Cloud Expansion

Separately, the company said Vultr has selected HPE and NVIDIA Corp. (NASDAQ:NVDA) to power its next-generation AI cloud infrastructure, supporting growing enterprise demand for private cloud and AI workloads.

The deployment will use the NVIDIA GB300 NVL72 by HPE with NVIDIA Spectrum-X Ethernet networking to support large-scale AI model training and inference. Future AI data centers will also incorporate HPE’s liquid cooling technology, services, and rack-scale systems.

HPE CEO Antonio Neri said the partnership validates the company’s AI data center architecture, while Vultr CEO J.J. Kardwell said global AI infrastructure remains “significantly underbuilt” and demand for high-performance AI computing continues to rise.

The expansion will support Vultr’s global AI infrastructure growth and GPU-as-a-service offerings with 400GbE and 800GbE NVIDIA Spectrum-X networking designed for large-scale AI clusters.

Technical Analysis

HPE remains in a strong long-term uptrend. The stock traded at $50.14, about 12.6% above its 20-day simple moving average of $44.58 and 92.7% above its 200-day moving average of $26.04.

The technical setup also remains constructive. The 20-day moving average is above the 50-day moving average, while the golden cross that formed in April, when the 50-day moving average moved above the 200-day average, continues to support the longer-term bullish trend.

However, near-term momentum has weakened. The Moving Average Convergence Divergence (MACD) indicator remains below its signal line, and the histogram is negative. That suggests buying momentum has cooled, although the broader uptrend remains intact.

The stock also trades 43.9% above its 50-day moving average of $34.88. Such an extended move can increase the likelihood of short-term pullbacks as investors lock in gains.

The next major resistance level is the June 52-week high of $64.25. Initial support sits near the 20-day moving average at $44.58.

Analyst Consensus & Recent Actions

HPE trades at about 45.2 times earnings. The stock carries a consensus Buy rating with an average analyst price forecast of $69.69. Recent analyst actions include:

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

ETF Exposure

HPE is a meaningful holding in several exchange-traded funds, including:

  • SEI Enhanced U.S. Large Cap Value Factor ETF (NASDAQ:SEIV): 2.30% weighting.
  • SEI QiM U.S. Large Cap Value Active ETF (NASDAQ:SEIV): 2.30% weighting.
  • ALPS Sector Dividend Dogs ETF (NYSE:SDOG): 2.59% weighting.

Large inflows or outflows in these funds can influence demand for HPE shares.

Price Action

HPE Stock Price Activity: Hewlett Packard shares were up 3.74% at $50.19 at the time of publication on Wednesday, according to Benzinga Pro data.

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