Hewlett Packard Enterprise, GM Positioned for AI Boom as Stocks Remain Undervalued

San Jose, California – Hewlett Packard Enterprise (HPE) and General Motors (GM) are both gearing up to take advantage of the booming demand for artificial intelligence infrastructure as their stocks remain undervalued compared to their growth potential. Investors are encouraged to pay attention to these two companies that stand at the forefront of the AI revolution.

HPE has positioned itself as a crucial provider of data center infrastructure, with a focus on hybrid cloud solutions and energy-efficient systems. In the second quarter of 2025, HPE reported revenue growth of 7% year-over-year, amounting to $7.6 billion, attributed to strong performance in its AI and hybrid cloud segments. The company aims for a server operating margin target of 10% by the fourth quarter of 2025, signaling its intent to enhance profitability.

Valuation metrics indicate HPE is currently undervalued, trading at $17.28 compared to an estimated fair value of $45.09. This suggests a potential upside of 160%. Its EV/EBITDA ratio stands at 5.51, significantly lower than competitors such as Dell and NetApp, despite HPE’s superior revenue growth.

On the other hand, GM is emerging as a leader in energy efficiency through its electric vehicle production, leveraging innovative technologies for greater impact. The company is at the center of AI’s energy needs by transforming its EVs into distributed energy resources with its subsidiary GM Energy. Through partnerships, such as the PG&E Vehicle-to-Everything pilot, GM is working on bidirectional charging technology that allows electric vehicles to serve as mobile energy storage.

Moreover, GM’s collaboration with NVIDIA enhances its production efficiency and energy use optimization. As of May 2025, GM boasts a low P/E ratio of 7.07, still trailing behind its rivals, which suggests a significant growth opportunity for investors.

GM’s Ultium Platform is expanding its EV lineup, with ambitious goals to sell 1 million EVs annually by 2025, bolstered by a strategic $35 billion investment in EV and autonomous technology.

Both companies’ focus on developing energy-efficient solutions puts them in prime positions to meet the increasing energy demands driven by AI developments. Investors looking for promising opportunities should consider HPE and GM as key players in this transformative sector.