This Boring Tech Dinosaur Might Finally Make Jim Cramer Eat His Words… Thanks to Nvidia

Until roughly five minutes ago, Hewlett Packard Enterprise was the tech equivalent of that guy at the bar rambling about filing cabinets and printers… the kind of conversation that makes you miss your dentist’s thoughts on flossing (and that’s saying something). Not only is HPE known as boring… Wall Street analysts from every firm you can think of practically have the word tattooed on the stock. And honestly, it’s a fair criticism. Revenue’s been crawling at a riveting 3% a year… the kind of pace that gets investors more hyped to watch paint dry than to get juiced up for an earnings report.

Even worse, its peers have been putting up incredible numbers. IBM’s pulling in 9% annual growth with ease. Dell’s server business just put up a beastly 29% surge last quarter. And even Cisco, whose innovations are roughly as exciting as the average Facebook post, is managing a solid 5–6%. HPE, on the other hand, has spent the last decade chasing relevance. And missing.

But now, in a plot twist that even Jim Cramer didn’t see coming (and he literally just said he can’t get excited about HPE), the company might finally be getting its long-overdue HGTV-style makeover. The makeover? A new partnership with none other than Nvidia (no big deal). They're teaming up with the Leibniz Supercomputing Centre in Germany to build “Blue Lion,” a next-gen supercomputer powered by Nvidia’s upcoming “Vera Rubin” chips. Think of it as HPE buying a one-way ticket to the AI relevance… and for once, not missing the departure.

This Blue Lion beast is expected to go live in 2027 and will be used to simulate stuff like climate change and turbulent atmospheric flows… you know, things that matter. Nvidia says it’ll combine good ole physics with machine learning to spit out forecasts decades into the future. Science nerds everywhere are salivating. Oh, and Blue Lion isn’t Nvidia’s only side hustle in Europe. They’ve already helped build Jupiter, now officially Europe’s fastest supercomputer, which just so happens to be (surprise) powered by Nvidia chips too.

So what does this mean for HPE? Maybe… just maybe… it means they’re finally stepping out of the dusty enterprise basement and entering the AI arms race with something more exciting than another box labeled “network storage.” To be fair, HPE’s latest earnings weren’t a total disaster. They beat on EPS ($0.38 vs. $0.33 est.), revenue hit $7.6B, and they’re guiding Q3 above expectations. Plus, their hybrid cloud biz (GreenLake) is growing like a weed… 46% ARR growth isn’t nothing.

But hold your horses. This is still a company that’s trading at a dirt-cheap 0.7x sales, and not in the “hidden gem” way. More like the “value trap” way. Their return on capital barely beats inflation, and a $1.4 billion goodwill impairment last quarter didn’t exactly scream “fiscal discipline.” Still, with an Nvidia co-sign and some actual traction in AI infrastructure, HPE might finally be worth taking seriously. Will the market care? Time will tell. But at $18 per share with a potential 15% upside (if analyst targets are right), HPE may be turning the corner (finally).

Just don’t expect too much. This is still HPE. If they do make it to the AI conference, they’ll probably show up 20 minutes late… with a Dell laptop.

At the time of publishing this article, Stocks.News holds positions in Meta and Dell as mentioned in the article.