Boosted by strong AI server business, Hewlett Packard Enterprise (Hewlett Packard Enterprise) exceeded revenue and performance guidance in the last quarter, with the company's stock price soaring 15% after hours.<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/3b467b24-1733-41f3-8a33-56549166ba06.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/3b467b24-1733-41f3-8a33-56549166ba06.png"/>Overnight, Hewlett Packard Enterprise's financial report revealed that the company's revenue in the second fiscal quarter increased by 3.3% to $7.2 billion. This exceeded the consensus expectation of a 2% year-on-year decline to $6.82 billion. Earnings per share in the last quarter also reached 42 cents, surpassing the consensus expectation of 39 cents.The outperformance was mainly driven by Hewlett Packard Enterprise's server business, which generated $3.87 billion in revenue last quarter, exceeding analysts' expectations of $3.45 billion. The company stated that sales of systems for artificial intelligence doubled from the first quarter, reaching over $900 million. Hewlett Packard Enterprise CEO Antonio Neri mentioned in an interview that increased customer demand and stable supply of high-performance semiconductors led to the growth in sales of AI systems.Looking ahead, management expects revenue growth for the fiscal year 2024 to be between 1% and 3%, with earnings per share ranging from $1.85 to $1.95. For reference, analysts expect revenue growth of 0.1% and adjusted earnings per share of $1.89.Hewlett Packard Enterprise was formerly the enterprise products division of HP, which was spun off from HP in November 2015. Its main product lines include computing servers, storage arrays, network equipment, and high-performance computing business.Compared to other tech companies operating in the server business, Hewlett Packard Enterprise's stock performance this year has been relatively flat, with only a 3.7% increase. In contrast, Dell and Super Micro Computer have seen gains of 77% and 171% respectively.Following the earnings announcement, Hewlett Packard Enterprise CFO Marie Myers stated in a conference call that the backlog of AI server orders is $3.1 billion, slightly lower than Dell's $3.8 billion announced last week.CEO Antonio Neri believes that after this quarter's performance disclosure, the market will recognize Hewlett Packard Enterprise's value.Bloomberg Intelligence analyst Woo Jin Ho pointed out that while Hewlett Packard Enterprise has shown impressive performance in the AI server business, other business lines such as networking continue to drag down its performance. The Intelligent Edge, including networking business, reported revenue of $1.09 billion, below analysts' expectations of $1.25 billion. In January this year, Hewlett Packard Enterprise agreed to acquire Aruba Networks for $1.4 billion to enhance its networking services. Neri expects customer demand to improve over time.Internally, there is not much confidence among Hewlett Packard Enterprise executives. In the past three months, insiders at Hewlett Packard Enterprise have sold $1.9 million worth of stock, signaling very negative internal sentiment, below the industry average level<pre><code></code></pre>

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Huiyi's AI server business has performed impressively, surpassing Wall Street's expectations in both revenue and guidance. The stock's current gains are far behind competitors like Dell. The CEO stated that after this quarter's performance disclosure, the market will discover Huiyi's value

AI server demand strong, Huiyi Technology surges 15% after hours