From Nasdaq:

Juniper Networks’ shares surged nearly 21% after reports of Hewlett Packard Enterprise nearing a $13 billion deal to capitalize on AI boom. Mist AI, Juniper’s AI platform, has seen revenue almost double. HPE aims to leverage Juniper’s AI and network security offerings as it looks to tap into artificial intelligence.

HPE is looking to tap into Juniper’s offerings, such as network security and AI-enabled enterprise networking operations (AIOps). Juniper’s Mist AI platform, which has doubled revenue, will be a key part of the deal.

The pandemic-induced demand surge ebbed, impacting both companies’ revenue. Juniper has struggled due to weak demand from wireless carriers, cable operators, and competition from Cisco Systems and Nvidia in the networking space. HPE has managed the slowdown better, with its broader product portfolio.

Juniper’s shares have been underperforming the Nasdaq Composite index, declining over 17% in 2022 and 2023. Juniper’s market value is about $9.6 billion, with shares at $36.55 in early trading on Tuesday. Hewlett Packard Enterprise’s stock, on the other hand, fell over 8%.

Juniper’s price-to-earnings ratio for the next twelve months is 12.95, compared to Cisco’s 12.80. This is a key factor in the discussions around the potential deal between Juniper Networks and Hewlett Packard Enterprise.



Read more: Juniper soars on reports Hewlett Packard Enterprise close to $13 bln deal