Shares of Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) are up 25% in early Tuesday trading, changing hands near $59 after a blowout fiscal Q2 2026 report. Super Micro Computer (NASDAQ:SMCI) stock is along for the ride, climbing 5% to around $49 on a sympathy bid.
The move caps an extraordinary stretch for HPE stock, which entered the session up 90%-plus year to date (YTD) after riding peer Dell Technologies‘ (NYSE:DELL) prior-week beat. Today’s gap higher pushes HPE stock to fresh multi-year highs and validates the broader AI server thesis that’s pulling SMCI along.
Record Quarter and Accelerated Long-Term Targets
Hewlett Packard Enterprise posted Q2 FY2026 revenue of $10.68 billion, up 40% year over year (YoY), with non-GAAP EPS of $0.79 blowing past prior guidance of $0.51 to $0.55. Segment results were driven by the Juniper Networks integration and AI infrastructure demand.
Furthermore, Hewlett Packard Enterprise’s networking segment surged 148%, while Server revenue jumped 33%. Management raised FY2026 revenue growth guidance to 29% to 33% and lifted free cash flow expectations to at least $3.5 billion. Per the company’s 8-K filing, FY2026 is now tracking ahead of what Hewlett Packard Enterprise had previously targeted for FY2028, effectively pulling the long-term plan forward by two years.
The “No Cancellations” Signal and the CPU Inference Angle
Hewlett Packard Enterprise CEO Antonio Neri declared that the quarter delivered “record-breaking revenue, higher-than-anticipated profitability, and increased free cash flow.” Orders more than doubled, significantly outpacing revenue and building a record backlog.
Neri also addressed cancellation fears head-on, asserting, “Unlike COVID, when customers were double booking, we don’t see that at all. We have no cancellations.” That comment matters because it pushes back on the bear case that AI orders are inflated.
An underappreciated tailwind: AI inference can run on standard CPU servers, and corporate customers prefer them because they can run AI locally and securely on-premises. That broadens the AI infrastructure beneficiary pool beyond GPU-only plays and supports Hewlett Packard Enterprise’s higher-margin enterprise mix.
Super Micro Computer Catches the Bid
Super Micro Computer stock is rallying on read-through. Hewlett Packard Enterprise’s server segment growth confirms that enterprise AI buildouts are still accelerating, and Super Micro Computer’s own Q3 FY2026 print on May 5 already showed revenue up 123% YoY to $10.24 billion with gross margins recovering to 10%.
CEO Charles Liang stated that Super Micro Computer is “exceptionally well-positioned to meet the massive demand for various AI and enterprise verticals.” Dell Technologies’ prior-week blowout set the broader stage, and Hewlett Packard Enterprise’s results reinforce the through-line of hyperscaler capex plus on-premises corporate AI buildout.
Extended Levels and Honest Risks
However, both names sit at extended levels. HPE stock entered today up 97% YTD, with another 25% intraday on top. SMCI is now up 67% YTD, and it still carries legal and governance overhangs from prior accounting scrutiny.
A Vanda Research note flagged HPE as the second most-bought retail stock Monday, with retail buying over the last two sessions matching the prior 11 months combined. That’s a crowded tape, and AI capex could moderate if enterprise budgets tighten. Investors may want to size their positions accordingly.
What to Watch
Investors can watch for whether HPE stock gains hold into the close, plus follow-through across AI infrastructure peers including NVIDIA (NASDAQ:NVDA) suppliers. Key forward markers include order-to-revenue conversion on Hewlett Packard Enterprise’s record backlog, sustained Juniper synergies, and SMCI’s Q4 FY2026 results, which the company guided to $11 billion to $12.5 billion in net sales.
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