Barclays reiterated in a research note on Tuesday that Dell Technologies and Hewlett Packard Enterprise continue to present investment opportunities tied to artificial intelligence infrastructure spending and a strengthening enterprise hardware market, despite strong share-price performances so far this year.
The note described Dell as having established itself as a prominent original equipment manufacturer in AI servers, drawing solid demand from enterprise customers, sovereign buyers and newer cloud providers, while keeping the unit profitable. Barclays said HPE is leveraging networking opportunities following its acquisition of Juniper Networks and has adopted a more selective posture when it comes to AI server contracts.
Quantifying exposure to AI and cloud, Barclays estimated those businesses will make up about 36% of Dell's revenue in 2026 versus roughly 17% for HPE. The firm said this differential positions Dell to capture more of the AI server demand, whereas HPE is relatively stronger in enterprise networking, owing in part to Juniper.
Barclays also pointed to improving dynamics across traditional enterprise hardware markets. The brokerage noted that both companies have largely passed higher memory and component costs through to customers without materially reducing demand, a development that supports stronger server growth and margin improvement. According to the note, enterprise server demand is being supported by infrastructure refresh cycles alongside early AI-related workloads.
Looking ahead, Barclays said it does not anticipate major catalysts in the second half of the year. Nevertheless, the bank indicated that both Dell and HPE could see upside from further AI-related contract wins across various end markets.
As a result of its analysis, Barclays maintained Overweight ratings on both stocks, expressing a slightly more favorable stance on Dell with respect to AI servers and on HPE with respect to enterprise networking.
Summary
Barclays' research note on Tuesday positions Dell and HPE as attractive beneficiaries of AI infrastructure investment and a recovering enterprise hardware sector, citing Dell's leading role in AI servers and HPE's enhanced networking capabilities after acquiring Juniper Networks. The bank forecasts greater AI/cloud revenue exposure for Dell by 2026 and affirms that both companies have navigated higher component costs without significantly denting demand.
Key points- Dell is identified as a leading OEM in AI servers, drawing demand from enterprises, sovereigns and newer cloud providers.
- HPE is capitalizing on networking opportunities following its Juniper Networks acquisition and is selective on AI server contracts.
- Barclays projects AI and cloud businesses to represent about 36% of Dell's 2026 revenue vs roughly 17% for HPE; both firms retained Overweight ratings.
- Barclays does not expect significant near-term catalysts in the second half of the year, limiting clear short-term drivers for share performance.
- The potential impact of future AI-related contract wins remains uncertain for both companies.
- HPE's more selective approach to AI server contracts represents an operational stance that may influence the pace of AI-related revenue realization.