Progress Software Corporation Advances AI Features and Product Launches with Sitefinity and MarkLogic Server 12

Progress Software Corporation (PRGS) has released new AI-powered features in its Sitefinity content management platform and announced the general availability of MarkLogic Server 12. The updates aim to improve digital content creation, management, and optimization for marketers. PRGS provides AI-powered software to help businesses develop, deploy, and manage digital applications and experiences.

Hewlett Packard Enterprise (HPE) has reported a robust performance in its server business, with a 5.6% growth in the second quarter of fiscal 2025. The company expects its third-quarter revenues to rise by mid-teens sequentially and for fiscal 2025 server revenues to grow by low double digits, driven by large artificial intelligence (AI) deals and growth in AI systems [1].

HPE's AI server business is significantly contributing to its growth, with enterprises deploying compute-heavy infrastructure and AI factory proliferation. This has resulted in the acquisition of over $1.1 billion in net new order value and backlogs of $3.2 billion in AI systems in the second quarter of fiscal 2025 [1]. The newly introduced ProLiant Gen 12 server platform, focused on performance improvement, security enhancement, and direct liquid cooling technology, is a significant upgrade over its predecessors, strengthening HPE’s competitive position in the server market [1].

While HPE is experiencing a slowdown in sales of its traditional servers, the growth in AI server sales is compensating for this weakness. The Zacks Consensus Estimate for HPE’s 2025 revenues is pegged at $34.5 billion, indicating year-over-year growth of 14.2% [1].

Dell Technologies (DELL) is also capitalizing on the strong demand for AI servers, experiencing sequential growth in AI server adoption for the consecutive five quarters and six quarters in traditional servers [1]. Super Micro Computer (SMCI) is another server provider growing on the back of AI workloads, with data centers expanding their capacity and new data centers being created, driving demand for its high-performance, energy-efficient servers [1].

The proliferation of AI and its massive workload demand is likely to drive growth in the server-supported data center business, presenting ample opportunities for HPE, DELL, and SMCI to grow in the future [1].

From a valuation standpoint, HPE trades at a forward price-to-sales ratio of 0.76, below the industry’s 3.46. The Zacks Consensus Estimate for HPE’s fiscal 2025 earnings is pegged at $1.89 per share, with a year-over-year increase of 26.5% expected for fiscal 2026 [1]. HPE stock currently carries a Zacks Rank #2 (Buy) [1].

References:
[1] https://www.tradingview.com/news/zacks:bd96695cd094b:0-ai-propels-hpe-s-server-business-is-the-growth-thesis-strengthening/