Should You Buy, Sell or Hold HPE Stock After a 191% Surge in a Year?

HPE has surged 191% over the past year, and Zacks Investment Research argues the AI infrastructure story still has room, pointing to a forward price-to-sales multiple of 1.74 against an industry average of 4.83.

The fundamentals behind the run are concrete. HPE's Cloud & AI revenues rose 25% to $9 billion in fiscal Q3 2026. The AI systems backlog stands at $6.8 billion, and the company landed a $3.5 billion hyperscaler deal. GreenLake adoption reached 52,000 customers, up 18% year over year. Zacks notes margins have held stable and cites HPE's integrated portfolio as a differentiator.

Interpretation: the valuation gap is the crux of the bull case. A 1.74 forward P/S after a 191% rally suggests the market may still be pricing HPE as a legacy hardware vendor rather than an AI infrastructure play. The backlog and the $3.5 billion hyperscaler order give that rerating some visible revenue support, though a stock that has nearly tripled leaves less room for execution misses.

The source frames the call as a buy, citing the discount to the 4.83 industry average and the growth in Cloud & AI.