Hewlett Packard Enterprise (HPE)

The sleeper story is HPE's overnight transformation into a networking-first company - networking jumped to 29% of revenue and 50%+ of operating profit with accelerating normalized growth. While everyone obsesses over AI lumpiness, HPE's real binding constraint is component supply, not demand - they're rationing allocation to higher-margin products and still growing orders despite aggressive repricing. Neri's quote says it all: 'We don't have enough supply for all the customer demand we are seeing.' The memory inflation cycle lasting into 2027 is actually a feature for HPE, separating them from commodity players who can't pass through pricing. My view changes if traditional server orders start declining or if the networks for AI pipeline stops converting to backlog.