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%. 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.

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 technical setup remains constructive, with the 20-day moving average above the 50-day moving average. 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 as the Moving Average Convergence Divergence (MACD) indicator remains below its signal line and the histogram is negative. The stock also trades 43.9% above its 50-day moving average of $34.88. The next major resistance level is the June 52-week high of $64.25, while 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 reiterating Buy and raising its price forecast to $79 on June 3, Argus Research maintaining Buy and increasing its forecast to $70 on June 3, and Evercore ISI maintaining Outperform and lifting its forecast to $70 on June 2.

Key Infrastructure Components