Morgan Stanley Upgrades HPE to Overweight Amid AI-Driven Revenue Surge

Key Facts

Amid the accelerating expansion of the AI infrastructure sector, Morgan Stanley has upgraded Hewlett Packard Enterprise (HPE) from Equal Weight to Overweight. This move follows the company's reported 40% year-over-year revenue growth, reaching $10.68 billion, driven by robust demand in computing and AI-related infrastructure. The company also posted adjusted earnings of $0.79 per share, reflecting a strong quarterly performance despite the bank slightly lowering its price target from $71 to $69.

This upgrade arrives as major technology firms face shifting analyst valuations based on their capacity to meet data center needs. According to market data, HPE shares closed at $53.22 on August 7, 2026, with the session trading between a low of $50.65 and a high of $53.57. Analyst reports suggest a potential 30% upside for the stock, positioning the company competitively within the communication equipment and high-performance computing sectors.

Investors should watch HPE's current price levels, which stood at $53.22 at the close of August 7, 2026, to gauge the market's reaction to the rating upgrade. Looking at the economic calendar, recent data showed strength in the US manufacturing sector, with the ISM Manufacturing PMI reaching 55.6 on August 3, which may support broader demand for enterprise IT solutions in the near term.