Hewlett Packard Enterprise Company (NYSE:HPE) shares are trading higher on Friday. BofA Securities analyst Wamsi Mohan maintained a Buy rating at a price target of $24.00.
On Thursday, at HPE's AI Day, the company introduced the industry's first 100% fanless direct liquid cooling system, enhancing energy and cost efficiency for large-scale AI deployments.
Antonio Neri, president and CEO of HPE, stated, "The architecture we unveiled today uses only liquid cooling, delivering greater energy and cost-efficiency advantages than the alternative solutions on the market. In fact, this direct liquid cooling architecture has the potential to yield a 90% reduction in cooling power consumption as compared to traditional air-cooled systems."
Apart from this, the company unveiled the HPE ProLiant Compute XD685, optimized for AI model training.
Equipped with 5th Gen Advanced Micro Devices, Inc.'s (NASDAQ:AMD) EPYC processors and AMD Instinct MI325X accelerators, it enables fast, secure, and energy-efficient AI clusters for tasks such as large language models, natural language processing, and multi-modal training.
The analyst says that the key takeaway from the event is that Hewlett Packard's strong engineering legacy in supercomputing and 100% direct liquid cooling (DLC) positions it as a differentiator.
As data centers increasingly adopt liquid cooling for greater power efficiency and higher-density solutions, HPE stands to benefit, adds the analyst.
The analyst sees upside potential from Juniper synergies, structurally higher margins, and growth opportunities in AI.
Related: Hewlett Packard Analyst Gives 5 Reasons To Be Bullish As Juniper Deal Promises To 'Shift Focus'
Investors can gain exposure to the stock through First Trust S&P 500 Diversified Dividend Aristocrats ETF (NASDAQ:KNGZ) and First Trust Exchange-Traded Fund First Trust S&P 500 Diversified Free Cash Flow ETF (NYSE:FCFY).
Price Action: HPE shares are up 0.92% at $20.73 at the last check Friday.
- Hewlett Packard Analyst Is Bullish Ahead Of AI Day, $14B Juniper Networks Deal
