HPE Stock Rips After $6.3 Billion AI Backlog Smashes Its Own Targets

Hewlett Packard Enterprise (HPE) surged 25% intraday after reporting a $6.3 billion AI server backlog and pulling forward FY2028 targets to the current fiscal year. The company's non-GAAP operating margin expanded to 13.3% from 8%, signaling a successful shift to high-value AI infrastructure. Bank of America raised its price target from $38 to $80. However, bears note that Juniper integration costs and component shortages could limit backlog conversion speed.