Jim Cramer Says Hewlett Packard Enterprise (HPE) Has the “Horses” but Remains a Dell (DELL) “Fan”
Jim Cramer praised Hewlett Packard Enterprise (HPE) for its AI growth but expressed preference for Dell (DELL). HPE's Q3 revenue rose 33.7% YoY to $12.2B, with AI-systems orders up 30%. Dell's Q2 revenue increased 58% to $47B, with AI-optimized server revenue doubling. Both companies face challenges: HPE has high debt and inventory, while Dell sees margin pressure from AI servers.
How this was made
The 30-second read
Why it matters
The earnings beats and guidance lifts provide fresh data for traders, though balance sheet concerns temper enthusiasm.
Market read
Both HPE and Dell show strong AI-driven growth, influencing tech sector sentiment.
What to watch
Dell's margin pressure from AI server mix may offset revenue gains.
Background
Jim Cramer highlighted HPE's AI progress while expressing personal preference for Dell.
Ticker impact
HPE reported fiscal Q3 revenue up 33.7% YoY with strong AI growth and higher purchase obligations.
Potential short-term upside on earnings beat, medium-term caution on balance sheet.
Revenue beat supports price, but higher commitments could limit upside.
Dell posted fiscal Q2 2027 revenue up 58% YoY, AI server revenue doubled and raised FY guidance.
Likely near-term rally on guidance lift.
Guidance increase and double-digit growth are material catalysts.
Market effects
AI hardware demand benefits both HPE and Dell, but inventory pressures may affect peers.
U.S. tech sector sees uplift from AI growth.
AI server boom influences global hardware suppliers.
Counterpoint
Rising purchase obligations and inventory could lead to margin compression for HPE.
Key entities
- personJim Cramer
Mad Money host offering commentary.
- personMichael Dell
CEO of Dell Technologies.
