Hewlett Packard Enterprise (HPE) stock surged 5.17% in pre-market trading on Thursday, following the company's impressive third-quarter results and raised fiscal 2025 outlook. The technology giant reported better-than-expected revenue, driven by robust demand in its server and networking segments.

HPE's strong performance was particularly notable in its networking revenue, which jumped 54% in the quarter, boosted by the recent acquisition of Juniper Networks. The company also benefited from surging demand for AI servers, as big tech companies and startups race to deploy generative AI services like ChatGPT, which require substantial computing power.

Wall Street analysts responded positively to HPE's results, with several firms raising their price targets. Wells Fargo increased its target to $26 from $22, Susquehanna raised it to $21 from $16, Citigroup bumped it to $26 from $25, and Raymond James lifted its target to $30 from $29. The company's raised fiscal 2025 guidance, which now exceeds analyst estimates for both adjusted EPS and revenue, further fueled investor optimism.