Hewlett Packard and Oracle Expand Partnership to Scale AI Infrastructure
On September 2, Hewlett Packard Enterprise (NYSE:HPE) announced an expanded collaboration with Oracle Corporation (NYSE:ORCL) aimed at scaling Oracle's global artificial intelligence infrastructure using HPE Juniper Networking across Oracle Cloud Infrastructure data centers. The partnership builds on over a decade of joint engineering and leverages HPE’s routing and switching platforms to support OCI’s growing GPU superclusters, which are critical for AI workloads. Following the announcement, analysts raised price targets for both companies. Barclays analyst Tim Long increased his target for HPE by $12 to $79 (Overweight), citing strong server demand and margins. Morgan Stanley's Sanjit Singh also raised Oracle’s target by $3 to $210 (Equal Weight), highlighting GPU-as-a-Service growth potential. Both companies reported solid financial results in their latest quarters, with HPE showing a 34% year-over-year revenue increase driven largely by server and networking demand. Oracle posted record Q4 fiscal 2026 revenue of $19.2 billion, including a 93% surge in Cloud Infrastructure (IaaS) sales.
Topics: AI Infrastructure Cloud Computing Networking Stock Warrants