• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Hewlett Packard’s networking business set to double as EU poised to approve Juniper acquisition

by July 30, 2024
written by July 30, 2024

Hewlett Packard Enterprise (HPE) is on the verge of a significant expansion as EU antitrust authorities are expected to unconditionally approve its acquisition of Juniper Networks.

This strategic move, announced in January, aims to bolster HPE’s position in the rapidly growing networking and AI sectors. The approval could be a game-changer, doubling the size of HPE’s networking business and setting the stage for increased competition with industry giant Cisco.

The European Commission is slated to make its decision on August 1, with British antitrust authorities following suit on August 14.

The acquisition, valued at $40 per share, caused HPE’s stock to surge by over 21% in a single day when first announced. This approval would mark a significant milestone in HPE’s strategic expansion.

Competing with Cisco

HPE had multiple reasons to acquire the networking gear maker. But it was mainly the rush to stay ahead of the demand for services required as a result of the AI boom. Juniper’s main competitor is Cisco and by grabbing the smaller company, HPE can now pose significant threat to Cisco’s networking business.

Here’s what the CEO Antonio Neri had to say earlier in the year:

This transaction will strengthen HPE’s position at the nexus of accelerating macro-AI trends, expand our total addressable market, and drive further innovation for customers as we help bridge the AI-native and cloud-native worlds, while also generating significant value for shareholders.

HPE CEO Antonio Neri

If the deal goes ahead, HPE’s networking business segment will double in size, posing significant challenges for Cisco. As the AI trend continues and companies increase their spending to fully utilize the new technology, HPE will have already positioned itself to take a big chunk of this revenue.

Juniper’s CEO Rami Rahim will lead the networking segment after the acquisition.

Positioning for the new Nvidia chips

Earlier last month, HPE announced a stellar quarterly earnings report beating revenue estimates comfortably thanks to AI related revenue. During the earnings call, the management pointed out how companies will have to switch from water cooled servers to direct liquid cooling. This will present HPE a great chance to improve its topline, especially when the Blackwell line of Nvidia’s GPUs comes out.

The CFO clearly thinks that data centers will get more and more complex and HPE’s solutions will offer companies the right product to manage these complex systems.

That’s going to be a real differentiator for customers because customers will want to go to work with someone where not only do you have the intellectual property and sort of the plumbing, but you’ve got the know-how around how to manage that data-center environment, because these data centers are going to become quite complex to manage

CFO Marie Myers

Since its last earnings report earlier in June, the stock has lost its momentum and is offering a good buy opportunity. An entry at this point could give investors a chance to capitalize not only on the eventual acquisition news but also on the pre-earnings rally for the next quarter.

The post Hewlett Packard’s networking business set to double as EU poised to approve Juniper acquisition appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Nikola stock price outlook: All eyes on August 9
next post
OpenAI’s SearchGPT poised to challenge Google’s dominance: Should investors be concerned?

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Duffy’s DOT accuses Biden, Buttigieg of inflating air traffic controller pipeline: ‘Juiced the numbers’

    August 20, 2025
  • Blinken pressured to freeze Afghanistan aid after revelation nearly $300M could have gone to Taliban

    August 7, 2024
  • Judge unseals key filing in special counsel’s election case against Trump

    October 2, 2024
  • ‘Instincts for restraint’: Senate divided over who gets to declare war

    June 19, 2025
  • CFD Modelling: Learn About Derivative Trading

    July 23, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,786)
  • Investing (634)
  • Stock (894)

Latest Posts

  • Ukrainian designer predicts Zelenskyy will wear military suit for high-stakes Trump meeting

    August 18, 2025
  • Biden caters to ‘far-left’ dark money groups with Supreme Court ‘gimmick,’ critics say

    July 30, 2024
  • At least 26 American hostages released since Trump took office

    April 12, 2025

Recent Posts

  • ‘Swindled the American taxpayer’: New House GOP internal memo rips Dem USAID uproar

    February 5, 2025
  • TikTok to withdraw Lite Rewards program permanently from EU amid safety concerns

    August 5, 2024
  • Mark Green announces retirement from Congress before end of term

    June 9, 2025

Editor’s Pick

  • Disgraced ex-Sen. Bob Menendez sentenced to 11 years in bribery case

    January 29, 2025
  • The change voters seek goes beyond the left-right divide

    July 24, 2024
  • Netanyahu shows picture of Bibas family at combat officers’ graduation: ‘Remember what we are fighting for’

    February 23, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock