Hewlett Packard Enterprise
stock was rising Thursday following the announcement of an expanded partnership with
Nvidia.
It’s the latest sign that close links with Nvidia are seen as key to benefiting from spending on artificial-intelligence hardware.
The combined HP Enterprise-Nvidia technology will allow businesses to quickly customize AI models using private data and deploy applications such as chatbots, the companies said in a joint statement on Thursday. The generative AI offering will be available beginning in the first quarter of 2024.
HP Enterprise shares were up 1.9% at $16.84 in trading Thursday following its joint announcement with Nvidia. It was adding to a 6.4% rise on Wednesday following its October-quarter earnings result.
“Our expanded collaboration with HPE will help enterprises drive unprecedented productivity through AI applications that connect with business data to power accurate assistants, informed chatbots and semantic search,” said Nvidia CEO Jensen Huang, in a statement.
HP Enterprise has already seen some gains from AI in its high-performance-computing business, and it has an existing partnership with Nvidia. However, the stock has lagged the technology sector as a whole against a weak backdrop of business spending on IT, having only risen 3.5% this year through Wednesday’s close.
“HPE has a seat at the AI table with its Nvidia partnership, and also with its Slingshot RoCE networking platform, which provides an alternative to the ubiquitous Infiniband protocol currently used for AI workloads,” wrote Raymond James analyst Simon Leopold in a research note following the company’s earnings report late Tuesday.
Leopold has a $20 target price and an Outperform rating on HP Enterprise stock.
HP Enterprise also announced a series of other AI-related products on Thursday, including cloud offerings for machine-learning development, data analytics and AI-optimized file storage.
Write to Adam Clark at [email protected]
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