Hewlett Packard Enterprise Co (NYSE:HPE), currently in the process of acquiring Juniper Networks for $14 billion, is preparing to host an AI Day on Oct. 10.
BofA Securities analyst Wamsi Mohan maintains a Buy rating for Hewlett Packard Enterprise and price target of $24.
The company can leverage its "unique history" in deploying larger systems at scale, Mohan says.
The HP Thesis: The company is the second largest in terms of market share for servers, Mohan said.
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"As AI servers start to proliferate Enterprise and Sovereign, we expect HPE to benefit because of scale, enterprise relationships and ability to deliver support and service," he added.
AI server racks consume 3x to 11x the power density of traditional racks, which suggests that "liquid cooling will become a definite need within the industry," the analyst stated.
Hewlett Packard currently offers hybrid air and liquid cooling as well as direct-to-chip liquid cooling. The company "has partnered to design immersion liquid cooling solutions," he further wrote.
Mohan expects the overall thermal management industry to surpass $16 billion by 2033.
Price Action: Shares of Hewlett Packard Enterprise had risen by 0.46% to $20.96 at the time of publication on Tuesday.
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