Hewlett Packard Enterprise (NYSE:HPE) is a global technology company that provides solutions in IT infrastructure, software, and services. It competes with major players like Dell Technologies and IBM in the hardware and software sectors. On November 24, 2025, Citigroup upgraded HPE's rating to "Positive" from "Buy," with the stock priced at $20.52, as reported by TheFly.
Despite this positive outlook from Citigroup, HPE faces challenges due to rising memory prices. Morgan Stanley warns of a "pricing supercycle" for NAND and DRAM, which could squeeze margins for Original Equipment Manufacturers (OEMs). This has led to downgrades across the hardware sector, affecting companies like Dell and HPE.
Morgan Stanley downgraded HPE from "overweight" to "equal weight," causing its stock to drop by 7%. The investment bank's concerns center around the impact of rising memory costs on earnings. HPE's stock price currently stands at $20.99, reflecting a 2.31% increase, with a market cap of approximately $27.69 billion.
The memory price surge has hit Dell particularly hard, with its rating cut from "overweight" to "underweight" and its price target reduced from $144 to $110. Dell's higher exposure to DRAM and thinner hardware margins make it vulnerable. HPE and other companies like HP Inc and Lenovo also saw their shares drop by as much as 6%.
Not all companies are equally affected by the memory price surge. Morgan Stanley maintains a positive outlook on Pure Storage and Apple, citing their stronger software mix and differentiated business models as protective factors. This highlights the varying impact of the memory price surge across the hardware sector.
