On CNBC's Mad Money, Jim Cramer acknowledged that Hewlett Packard Enterprise has "the horses" under CEO Antonio Neri but said he remains a "Dell fan," citing his preference for Michael Dell and his company. HPE's fiscal third-quarter revenue rose 33.7% year over year to $12.2 billion, with AI-systems orders increasing over 30% sequentially to $2.4 billion. Dell reported stronger growth, with fiscal second-quarter revenue up 58% to $47 billion and AI-optimised server revenue doubling to $16.4 billion. Both companies face challenges: HPE has $20.2 billion in debt and $30.4 billion in purchase obligations, whilst Dell's gross margin fell 10 basis points to 19.4% due to AI server mix pressures.

Hewlett Packard Enterprise is addressing persistent memory supply constraints through multiyear supplier agreements, alternative product configurations, and improved forecasting, CEO Antonio Neri said on a September earnings call. However, supply shortages limited HPE's ability to convert strong AI systems demand into revenue in Q3. To meet rising customer orders, HPE increased inventory to $11.8 billion by end of Q3. The company has signed multiyear supplier agreements to secure capacity, reducing lead times and improving backlog conversion. "Supply will continue to be constrained, which means we're going to continue to run into high backlog," Neri said. HPE expects Q4 revenue between $13.9 billion and $14.8 billion, up from Q3's $12.2 billion, driven by networking and cloud demand.

Hewlett Packard Enterprise's shares have risen over 120% in the past year, positioning it alongside Super Micro and Dell as key AI server hardware providers. After volatile post-earnings trading in early September, Jim Cramer defended the stock, saying the quarter "wasn't all that bad". HPE's Q3 results showed 16.2% revenue growth and 75% networking revenue growth. The company raised its fiscal 2026 revenue guidance to 34-37% and reported $2.4 billion in AI orders, up from Q2's $1.8 billion. However, profitability remains challenging. Networking operating profit margin fell to 22.4% from 25.1% previously. Management noted orders grew three to five times faster than revenue, potentially delaying recognition. Hedge fund interest increased significantly, with 85 funds holding stakes in Q2 versus 58 in Q1. Point72 Asset Management added a $120 million position.