HPE, SMCI, NOW Stocks Rise In Sympathy Surge After Dell's Blowout Report

• Hewlett-Packard and Super Micro are Dell’s primary competitors in servers, storage, networking, and enterprise infrastructure.
• Dell sells ServiceNow tools bundled with its products.
• Stocktwits sentiment for HPE, SMCI, and NOW moved higher on Friday.

Shares of Hewlett Packard Enterprise, Super Micro, and ServiceNow rallied in early premarket trading on Friday in a sympathy surge after a blowout report from Dell Technologies.

HPE gained a whopping 21%, while NOW rose over 6%, triggering high interest among retail traders on Stocktwits. SMCI gained over 11%.

Hewlett-Packard and Super Micro are Dell’s primary competitors in servers, storage, networking, and enterprise infrastructure, and target much of the same customer groups.

On Thursday, Dell reported first-quarter results that topped analysts’ expectations by a wide margin and raised its full-year forecast, driven by exceptional momentum for its AI-optimized servers.

Dell and ServiceNow have a longstanding partnership focused on enterprise IT management, cloud operations, cybersecurity workflows, and AI infrastructure management. Dell integrates parts of its infrastructure and support software with ServiceNow’s platform for large enterprise customers.

On Friday, ServiceNow and Indian IT major Wipro announced an expanded agreement to sell bundled solutions to Wipro’s clients, Reuters reported. 

DELL’s Q1 Recap

Dell’s fiscal first-quarter revenue jumped 88% to $43.84 billion, beating analysts' estimate of $35.74 billion. More than a third of the total revenue, $16.1 billion, came from sales of AI-optimized servers, with that revenue jumping 757% year-over-year.

Dell’s adjusted profit came in at $4.86 per share, also sharply higher than the  $2.96 target.

Consequently, Dell raised its full-year revenue forecast to a $165 billion to $169 billion range, up from a prior range of $138 billion and $142 billion. It also lifted its adjusted earnings guidance to $17.90 per share at the midpoint, from $12.90.

Retail View On HPE, NOW, SMCI

HPE and NOW were among the top trending stocks on Stocktwits early Friday. The retail sentiment for HPE and SMCI shifted to ‘extremely bullish’ from ‘bullish’ the previous day, while the sentiment for NOW shifted to ‘bullish’ from ‘neutral.’ 

“Old saying, every dog has its day. That day has come for HPE and SMCI!” said a trader.

Interest in NOW was also high, as it has rebounded in recent weeks. The stock is up nearly 30% since its earnings report on April 22. “$NOW is breaking out! Mark my words this will be one of the best performing stocks into the end of the year. Know what you own!” said a trader.

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