When Hewlett Packard Enterprise hosts an investor event Thursday showcasing its artificial intelligence prowess, Bank of America expects its "liquid cooling" technology for AI servers in data centers to be highlighted. HPE stock has climbed 23% this year.
"We expect HPE to focus on liquid cooling, supercomputing capabilities including accelerated computing and engineering expertise around manufacturing and deployment of large-scale AI systems," said BofA analyst Wamsi Mohan in a report. "As computing moves to larger scale clusters, we expect HPE to benefit from their unique history to deploy large scale systems at scale."
On the stock market today, HPE stock rose a fraction 20.94. In early 2024, HPE agreed to buy Juniper Networks for $14 billion.
Meanwhile, robust data-center AI server sales have been a bright spot for HPE stock and rival Dell Technologies.
Also, Mohan noted that AI server racks in data centers consume much more power. Nvidia's next-generation Blackwell AI chips require liquid cooled racks.
Liquid Cooling Demand To Boom?
"Large-scale adoption of liquid cooling has yet to begin but as evidenced by the projected power demands of Nvidia's next gen A.I. chips, liquid cooling will become a definite need within the industry," Mohan added.
"HPE currently offers hybrid air/liquid cooling and direct-to-chip liquid cooling across its server and supercomputing lines," he said.
Meanwhile, Super Micro Computer is among companies that are making liquid-cooled AI data center systems running the latest Nvidia chips. The San Jose, Calif.-based company, also known as Supermicro, recently announced its "AI SuperClusters" at the Computex trade show in Taiwan.
Further, Super Micro stock popped Tuesday after the company said it's shipping more than 100,000 graphics processing units per quarter.
Also, HPE stock holds a Relative Strength Rating of only 66 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
