Hewlett Packard Enterprise raises annual profit forecast on AI strength


FILE PHOTO: Figurines with computers and smartphones are seen in front of Hewlett Packard Enterprise logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - Hewlett Packard Enterprise raised its annual profit forecast on Wednesday, as demand for artificial intelligence servers continues to pick up owing to higher investments in AI infrastructure by businesses.

However, shares of HPE fell nearly 3% in extended trading. Michael Ashley Schulman, chief investment officer at Running Point Capital, attributed the share fall to a drop in quarterly revenue in the company's data analysis and traditional cloud segments.

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