Will the partnership drive increased demand for HPE infrastructure and potentially impact related hardware stocks or create cross‑selling opportunities?

Answer

The Rimini Street – American Digital tie‑up is essentially a “full‑stack” play that pushes third‑party SAP, Oracle and VMware workloads onto HPE’s servers, storage and networking platform. From a fundamentals standpoint, HPE stands to capture incremental spend from a new pipeline of migration projects that would otherwise be built on legacy or competing hardware. Because the partnership is focused on North‑American midsize enterprises—an area where HPE has been trying to regain market‑share—any lift in quarterly infrastructure orders should translate into higher‑than‑expected revenue growth and a modest improvement in gross margins (the “full‑stack” model typically yields a higher‑margin services mix).

Trading implications

• HPE (HPE) – upside: The stock is currently trading near its 4‑week 20‑day SMA and has been forming a shallow ascending channel (≈ $13.30–$13.80). A breakout above $13.80 with volume above the 20‑day average would signal the market pricing in the incremental demand, offering a low‑risk entry for a short‑to‑mid‑term long (target $14.50–$15.00, 4–6 % upside). Stop‑loss can be placed just below the $13.30 support line.

• Related hardware peers – cross‑selling effect: Dell Technologies (DELL) and Cisco (CSCO) are likely to feel a modest pull‑back as customers gravitate toward the HPE‑centric solution. Both stocks have been on a higher‑high, higher‑low pattern and are now overbought on the 14‑day RSI (> 70). A short‑term pull‑back to their respective 20‑day SMA (DELL ≈ $115, CSCO ≈ $55) could be exploited with a “sell‑on‑rally” or a protective put, especially if HPE’s earnings beat expectations.

• Risk: The partnership’s upside is contingent on the speed of migration projects and the ability of American Digital to scale deployments. If the rollout stalls, HPE may only see a modest “check‑the‑box” revenue bump, limiting upside. Keep the position size modest (≤ 5 % of portfolio) and monitor HPE’s order‑book guidance in its next earnings release (expected Q3 2025).

Bottom line: The alliance is a catalyst for incremental HPE infrastructure demand and creates a clear cross‑selling narrative that can lift HPE while pressuring competing hardware stocks. A breakout‑long on HPE with tight stops, paired with short‑term hedges on Dell and Cisco, offers a balanced, actionable play on the expected market shift.