Hewlett Packard Enterprise (HPE) is back in focus after unveiling new networking and compute products aimed at helping service providers roll out AI infrastructure more quickly and efficiently in the lead-up to Mobile World Congress 2026.

HPE’s recent product launches and Juniper integration news come after a stretch where the 1 month share price return of 3.52% and year to date share price return of 13.78% contrast with a 5 year total shareholder return of 72.07%. This suggests long term holders have still seen meaningful value creation even as near term momentum has cooled.

If AI infrastructure stories like HPE’s have your attention, it could be a good moment to scan a curated list of 33 AI infrastructure stocks and see what else fits your watchlist.

With HPE shares around US$20.84, a value score of 6, and the stock trading at a discount to both analyst targets and some intrinsic estimates, you have to ask: is this a mispriced AI infrastructure play, or is the market already baking in the next leg of growth?

Most Popular Narrative: 21.2% Undervalued

With Hewlett Packard Enterprise shares at US$20.84 versus a narrative fair value of US$26.44 based on a 10.49% discount rate, the current pricing sits well below what the most followed model implies, putting more attention on the assumptions behind that gap.

Strategic acquisitions and expansion in high-growth technologies, including the integration of Juniper, launches of next-gen Gen12 servers, and AI-driven management platforms, are enhancing HPE's competitive positioning in edge, networking, and AI, laying the groundwork for continued share gains and outsized revenue growth relative to traditional industry averages.

Want to see what is driving that valuation spread? The narrative leans heavily on future revenue mix, margin lift, and a different earnings run rate. Curious which specific growth and profit assumptions sit underneath that fair value line? The full story connects those inputs into one pricing blueprint.

Result: Fair Value of $26.44 (UNDERVALUED)

However, the story could change quickly if the Juniper integration delivers fewer cost savings than expected or if memory related hardware margins come under sustained pressure.

Next Steps

If the mix of risks and rewards here feels finely balanced, this is the moment to look at the data yourself and decide quickly. Start with 4 key rewards and 3 important warning signs.

Looking for more investment ideas?

If HPE has sharpened your focus on where to put fresh capital next, do not stop here. The broader opportunity set could be exactly what you are looking for.

• Target potential mispricing by scanning our list of 54 high quality undervalued stocks that pair fundamentals with a price tag some investors might be overlooking.
• Prioritise resilience by reviewing 80 resilient stocks with low risk scores, built to highlight companies with lower risk scores that may better match a cautious approach.
• Hunt for under the radar ideas through our screener containing 24 high quality undiscovered gems, where smaller names with solid metrics may not yet be widely followed.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.