Hewlett Packard Enterprise (NYSE:HPE) has disclosed plans to team up with the AI kingpin Nvidia (NASDAQ:NVDA) to bolster its position in the artificial intelligence (AI) race. At the Discover conference held in Las Vegas yesterday, HPE disclosed plans to launch a portfolio of generative AI solutions – Nvidia AI Computing by HPE – to enable faster AI adoption within a private cloud environment.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The deal provides enterprise customers with AI hardware and software tools co-developed by Nvidia and HPE. Additionally, HPE plans to offer consulting services to ensure a smooth and successful AI integration for its clients. This move is expected to potentially boost HPE’s profit margins through recurring revenue streams.
HPE is addressing the growing demand for private-cloud AI solutions as companies are reluctant to use public cloud platforms for sensitive data. Their co-developed offering will allow users to customize pre-trained large language models (LLMs) from OpenAI or Nvidia with their own data.
Is HPE Stock a Good Buy?
HPE stock has two Buy and eight Hold recommendations for a Hold consensus rating. After about a 30% rally in its share price year-to-date, analysts’ average HPE stock price target of $21.10 implies 3.39% downside potential from current levels.
What Is the Price Target for NVDA?
With 38 Buy and three Hold recommendations, Nvidia stock has a Strong Buy consensus rating. The company’s share price has surged a massive 173.8% so far in 2024. Following this outstanding performance, the analysts’ average price target on NVDA stock of $130.29 implies 3.9% downside potential from current levels.
