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Does Hewlett Packard Enterprise’s (HPE) Quantum Bet Reframe Its Role In Next-Gen Data Center Infrastructure?

Simply Wall St · 1d ago
  • In late July and early August 2026, Hewlett Packard Enterprise was highlighted for its growing AI and HPC storage capabilities at the Future of Memory and Storage conference and for joining Rigetti Computing and the Pittsburgh Supercomputing Center in the NSF-funded TangleLab quantum supercomputing testbed project.
  • These developments, alongside the appointment of seasoned technology and finance executive David I. Goulden to HPE’s board, underscore the company’s push toward advanced, higher-value infrastructure solutions spanning AI, quantum, and next-generation data center architectures.
  • We’ll now examine how HPE’s quantum-enabled TangleLab partnership and AI infrastructure focus reshape the company’s broader investment narrative.

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Hewlett Packard Enterprise Investment Narrative Recap

To own HPE here, you need to believe its pivot toward AI, networking, and hybrid cloud can offset pressure on legacy hardware and high debt. The key near term catalyst remains converting its large AI and networking order backlog into sustained revenue and cash generation, while the biggest risk is margin pressure from intense competition and elevated expectations. The latest AI, quantum, and storage headlines support the long term story but do not fundamentally change that near term risk balance.

The TangleLab quantum testbed partnership with Rigetti and the Pittsburgh Supercomputing Center is the most relevant development, as it reinforces HPE’s push into high performance, higher value infrastructure aligned with AI and advanced research workloads. While the project itself is relatively small in dollar terms, it keeps HPE embedded with leading institutions that are shaping next generation compute architectures, which ties directly into the company’s broader AI infrastructure catalyst and its effort to move further away from commoditized servers.

Yet beneath the excitement around AI and quantum, investors should also be aware that HPE faces ongoing margin and valuation risks that could become more pressing if...

Read the full narrative on Hewlett Packard Enterprise (it's free!)

Hewlett Packard Enterprise’s narrative projects $55.8 billion revenue and $4.8 billion earnings by 2029. This requires 12.9% yearly revenue growth and a $3.4 billion earnings increase from $1.4 billion today.

Uncover how Hewlett Packard Enterprise's forecasts yield a $65.56 fair value, a 25% upside to its current price.

Exploring Other Perspectives

HPE 1-Year Stock Price Chart
HPE 1-Year Stock Price Chart

While consensus focuses on AI-driven upside, the most bearish analysts assumed only about US$48.6 billion in 2029 revenue and US$3.9 billion in earnings, reminding you that opinions vary widely and that both bullish and cautious views may need revisiting after HPE’s latest AI and quantum updates.

Explore 5 other fair value estimates on Hewlett Packard Enterprise - why the stock might be worth as much as 62% more than the current price!

Decide For Yourself

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.