Hewlett Packard Enterprise: AI Networking Story Is Just Starting - Pessimism Risks Ahead

The Juniper acquisition expands Hewlett Packard Enterprise's AI networking TAM from ~$40B to $135B, while enhancing market share and supporting networking growth opportunities at a CAGR of ~50%. The excellent FY2026/FY2027 growth guidance has been well supported by the strong order momentum, growing backlog, and richer profit margins. Recent meltdown triggers HPE's cheaper P/E of 14.39x and 3Y PEG of 0.34x, while offering a rich upside potential of >40% to my LTPT of $78.70.