HPE Stock Gains After Absorbing Juniper To Build AI‑Native Hybrid Cloud Platform: Retail’s Bullish

Hewlett Packard Enterprise (HPE) on Wednesday finalized its acquisition of Juniper Networks, Inc. (JNPR), an AI-native networking company, marking a major shift in its strategy toward hybrid cloud and artificial intelligence solutions.

The deal, which was originally announced in January 2024 and approved by Juniper shareholders in April, brings Juniper under the HPE umbrella.

Following the news, Hewlett Packard Enterprise stock traded 3.1% higher in Wednesday afternoon trade. 

The acquisition expands HPE’s networking division twofold, equipping the company with a full, contemporary infrastructure, from core silicon to cybersecurity tools. 

The combination is expected to boost HPE’s transition into more profitable, fast-growing market segments, strengthening its long-term earnings potential.

The unified product lineup now includes AI-enhanced networking solutions tailored for hybrid cloud environments. 

Clients will now access a unified ecosystem featuring HPE’s compute, storage, hybrid cloud, and software tools paired with Juniper’s advanced networking expertise. 

The acquisition is expected to be immediately accretive to non‑GAAP earnings, with the enriched networking division projected to generate over half of HPE’s operating income. 

Following the closing of the deal, Juniper’s common shares, previously traded on the NYSE under the ticker ‘JNPR’ will stop trading on Wednesday and will be removed from the exchange.

HPE and Juniper Networks reached a settlement with the U.S. Department of Justice (DOJ) recently to resolve antitrust concerns over the $14 billion merger. 

As part of the settlement, HPE must divest its “Instant On” WLAN business and auction Juniper’s AI Ops for Mist source code. The DOJ stated the terms would maintain competitive balance.

On Stocktwits, retail sentiment toward Hewlett Packard Enterprise remained in ‘bullish’ territory with ‘high’ message volume levels.

Hewlett Packard Enterprise stock has lost over 1% year-to-date and 0.1% in the last 12 months.

Also See: Google Proposes New Search Changes Ahead Of EU Antitrust Showdown

For updates and corrections, email newsroom[at]stocktwits[dot]com.