HPE Stock Set for Biggest Gain Since 2016 on AI Server Sales.

Hewlett Packard Enterprise (HPE) shares have surged by 16% in premarket trading after the company reported better-than-expected revenue in the second quarter. The increase in revenue was driven by strong sales of servers designed for artificial intelligence (AI) work, which doubled from the first quarter to over $900 million. HPE's CEO, Antonio Neri, attributed the increase in AI systems sales to increased demand and better availability of high-powered semiconductors from Nvidia Corp. HPE's current backlog for AI systems is $3.1 billion, and the company has raised its revenue outlook for the fiscal year. However, some analysts believe that other business lines, such as networking, may be dragging down the results. [Extracted from the article]