Hewlett Packard stock soars on record backlog, booming AI server business

June 2, 2026 - 08:27

Hewlett Packard Enterprise saw its stock jump sharply in pre-market trading Tuesday after the company reported a standout quarterly performance driven by a record backlog and booming demand for its artificial intelligence servers. The maker of servers, storage, and networking gear posted results that easily beat Wall Street expectations, sending shares higher ahead of the opening bell.

The company's AI server business was a key highlight, with revenue more than doubling compared to the same period last year. Executives pointed to a surge in orders from large enterprises and cloud providers racing to build out AI infrastructure. HPE's total backlog hit an all-time high, reflecting strong demand that is expected to continue into the coming quarters.

Beyond AI hardware, the company also saw solid growth in its networking and edge computing segments. Management credited the strong performance to a shift in customer spending toward high-performance computing and data center modernization. The results mark a sharp turnaround from earlier concerns about a slowdown in enterprise tech spending.

Investors responded enthusiastically, pushing the stock up by double-digit percentages in early trading. The rally added billions to HPE's market value and lifted the broader tech sector. Analysts noted that the company's focus on AI and hybrid cloud solutions is paying off as businesses invest heavily in next-generation computing capabilities.