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  • Writer's pictureRealFacts Editorial Team

HP Reports Strong Earnings From Its Wave of AI Server Revenue

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Hewlett Packard reported strong earnings for the first quarter of the year, sales beat expectations due to the strong surge in growth of HP’s AI server business. Eric J. Savitz of MarketWatch reported the following numbers, “For the fiscal second quarter, HP Enterprise reported revenue of $7.2 billion, up 3% from a year earlier, or 4% adjusted for currency, ahead of the company’s guidance range of $6.6 billion to $7 billion, and above the Wall Street consensus at $6.8 billion as tracked by FactSet. Adjusted profit was 42 cents a share, above both the guidance range of 36 to 41 cents and the Street consensus at 39 cents. Under generally accepted accounting principles, the company earned 24 cents a share. The results were powered by HPE’s server segment, which had revenue of $3.9 billion, up 18% from the year-ago quarter, and well above the Street consensus at $3.46 billion. AI systems revenue more than doubled sequentially to over $900 million.”

This surge in AI server growth is huge for HP in a number of ways. For starters, for companies such as HP, AI integration is going to need to be at the forefront of everything they do from software to hardware. Secondly, this good news for HP comes right on the heels of Dell’s less than satisfactory first quarter report. Dell’s recent report cast some doubt on whether or not they will be able to make any solid strides in its AI server sales. We have recently seen that there is a sort of turf war for AI chip companies who are competing for market space, the AI software war is also going to get competitive and server revenue is going to be a fundamental part of that.


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