Jim Cramer Turned Out Right For This Particular AI Stock That’s Up Since Earnings

Enterprise computing firm Hewlett Packard Enterprise (HPE) experienced a significant surge in its share price after its earnings announcement on September 2nd. The stock has risen more than 120% over the past year, alongside other hardware providers like Super Micro and Dell. On September 3rd, Cramer expressed his positive view on HPE, stating, "I liked Neri.

I didn't think that was that bad." Despite the stock's volatility, with fluctuations on September 3rd and 4th, Cramer maintained confidence in the company's growth prospects. HPE reported a solid set of financials, with revenue increasing by 16.2% and non-GAAP gross margin rising to 16.2%. The company also raised its fiscal year 2026 revenue growth guidance to between 34% and 37%, signaling sustained growth.

Moreover, HPE secured $2.4 billion in AI orders in Q3, up from 1.8 billion in Q2. However, the company's profitability remains a concern, as its networking operating profit margin dropped from 25.1% to 22.4%. The rapid rise in orders, growing three to five times faster than revenue, could lead to delayed recognition. With a lower forward P/E multiple than Dell's, HPE may appeal more to investors focused on AI products.

Notably, 85 funds held HPE shares during Q2, a significant increase from 58 in Q1, with Point72 Asset Management recently adding a $120 million stake.