We recently released a list of
10 Underrated Technology Stocks to Invest in Today
In this piece, we will examine how Hewlett Packard Enterprise Company (NYSE:HPE) measures up against other underappreciated technology stocks worth considering for investment today.
Following significant macroeconomic hurdles, the information technology industry kicked off 2025 with renewed energy. After experiencing an unstable phase marked by elevated inflation, climbing interest rates, and global uncertainties, this sector seems poised for revival. According to a survey conducted by Deloitte among tech leaders, 62% predict that the sector will experience either “robust health” or “excellent health” throughout 2025. It’s projected that overall IT expenditures globally will rise by approximately 9.3%, largely due to substantial increases in software development and data center enhancements. Analysts foresee continued momentum in areas such as generative artificial intelligence, cybersecurity measures, and cloud service offerings—driven mainly by businesses transitioning their AI strategies from trial phases into comprehensive operational implementations.
In 2024, the number of job cuts decreased markedly, suggesting increased economic steadiness. However, fresh challenges have emerged, particularly due to geopolitical strains and regulatory hurdles. The global economy is now experiencing the impacts of President Trump’s broad-ranging tariffs, encompassing extra fees on key technology-producing nations such as Taiwan, India, and Vietnam, with rates varying between 26% and 49%. While semiconductor imports crucial for AI advancement have received temporary exemptions, tech firms dependent on worldwide supply networks confront heightened vulnerabilities because of the fluctuating trade policies.
In the meantime, generative AI is showing itself to be a two-faced tool. Although it is expected to add 21% to the U.S. GDP by 2030, according to reports from the
World Economic Forum,
There are increasing worries regarding how this technology might replace millions of jobs, especially those in administrative positions. As the
World Economic Forum
The key point is that the answer does not involve stopping AI progress; instead, it calls for “Genuine Intelligence.” This strategy highlights the importance of combining human critical analysis with AI technologies to promote equitable economic expansion.
Moreover, cybersecurity has emerged as a critical focus area within strategic plans. With the rise in AI utilization, the potential entry points for cyberattacks also expand. It is projected that by 2028, worldwide expenditure on cybersecurity will surpass $200 billion, reflecting an increased emphasis from companies aiming to strengthen their protective measures. Nevertheless, merely 24% of current generative AI initiatives are believed to have adequate security safeguards, highlighting trust issues remain a key barrier to broader AI adoption.
To summarize, even though 2025 presents significant opportunities for the IT sector thanks to progress in areas like generative AI, cloud migration, and substantial tech investments, enterprises must navigate an intricate array of moral, political, and legislative challenges. Companies that thrive will find harmony among bold technological advancement, prudent risk assessment, diversified supplier networks, and maintaining trust among stakeholders and customers.
Amidst this vibrant landscape, we’ll examine 10 Underrated Technology Stocks to Consider Today. These stocks aren’t just poised to take advantage of emerging prospects; they could also offer significant gains for those looking past the typical large-market leaders.
Methodology
To identify undervalued technology stocks, we began by focusing on businesses with a market cap exceeding $5 billion, thus zeroing in on well-established, sizable corporations. From this group, we selected those whose price-to-earnings (P/E) ratios were below 15, employing the P/E metric as an established measure to pinpoint potentially underpriced options driven by solid earnings performance. Next, we assessed these companies through the lens of hedge fund interest, leveraging insights provided in Insider Monkey’s Q4 2024 update. Ultimately, we compiled a roster of the top ten firms that attracted the fewest number of hedge funds, presenting them as potential hidden gems among tech stocks worth investing in now.
Why do we focus on the stocks that hedge funds accumulate? It’s straightforward: our analysis indicates that replicating the leading stock choices from premier hedge funds allows us to surpass the broader market performance. Each quarter, our monthly publication recommends fourteen small-cap and large-cap equities, achieving returns of 373.4% since May 2014, thereby exceeding its benchmark by 218 percentage points.
see more details here
).
A female software developer in a contemporary workspace engaged with several server units.
Hewlett Packard Enterprise Co. (NYSE:
HPE
)
P/E Ratio: 8.61
Hedge Fund Holders: 66
Hewlett Packard Enterprise Company (NYSE:HPE), located in Spring, Texas, offers services designed to help companies gather, examine, and respond to data from various sources such as servers, hybrid clouds, and smart edge devices. The company is presently refining its strategies for artificial intelligence, hybrid cloud environments, and advanced infrastructures.
Hewlett Packard Enterprise Company (NYSE:HPE) posted strong financials for the first quarter of fiscal year 2025, recording an uptick in revenues by 17%, totaling $7.9 billion. This surge was largely due to a significant 30% jump in their server segment along with an 11% rise in hybrid cloud services. Their GreenLake cloud service marked another achievement as annual recurring revenue surpassed $2 billion—a substantial hike of 46% compared to last year. Nonetheless, profit margins were affected negatively by competitive pricing strategies for servers and surplus stock related to artificial intelligence products, leading to a quarterly gross margin of just 29.4%. In response to these challenges, HPE declared plans for a workforce reduction of about 5% alongside stricter price management policies.
At the same time, HPE is exploring the potential of artificial intelligence. During NVIDIA GTC 2025, Hewlett Packard Enterprise Co. (NYSE:HPE) declared enhanced collaboration with NVIDIA (NASDAQ:NVDA). This partnership introduces HPE Private Cloud AI solutions that incorporate NVIDIA’s AI Data Platform. The newly launched products simplify setup processes for tasks related to generative AI, autonomous AI, and virtual replicas, enabling quicker realization of benefits for clients along with comprehensive monitoring via HPE OpsRamp. Upgraded HPE server models featuring NVIDIA’s Blackwell design position the firm as a leader in both AI model development and execution.
In April 2025, Elliott Management invested $1.5 billion in Hewlett Packard Enterprise Company (NYSE:HPE), which has reignited activism and could lead to further operational improvements. Given its status as an undervalued tech stock, HPE’s renewed emphasis on artificial intelligence, growth in hybrid cloud services, and efforts to boost internal efficiencies might create a compelling recovery narrative for investors.
Overall, HPE
ranks 10th
On our radar as undervalued tech picks to invest in currently, we recognize the upside potential with HPE. However, we’re more convinced that specific AI stocks offer better prospects for generating substantial gains over a brief period. An example would be one particular AI equity which has seen growth year-to-date in 2025, contrasting sharply against widely known AI equities that have dipped roughly 25% during the same timeframe. Should you seek an AI investment option that shows stronger promise compared to HPE yet remains affordable under five times its earning multiples, consider reviewing our detailed analysis on this subject.
cheapest AI stock
.
READ NEXT:
20 Top AI Stocks to Invest In Currently
and
30 Top Stocks to Purchase Currently as Recommended by Billionaires
.
Disclosure: There are none to declare. This article was first published here.
Insider Monkey
.