Hewlett Packard Enterprise to Build Supercomputer for EPFL

Hewlett Packard Enterprise HPE announced that it has been selected by Ecole Polytechnique Fédérale de Lausanne (EPFL) to build a next-generation supercomputer for its Swiss brain research initiative, Blue Brain Project.

The supercomputer, codenamed Blue Brain 5, designed on the company's SGI 8600 System, will help in modeling and simulation of the mammalian brain. The new system will be dedicated to simulation neuroscience, more specifically simulation-based research, analysis and visualization, reports HPE.

At the end of 2017, HPE was awarded the first contract by EPFL based on supercomputing requirements of the project and evaluating the bids. The total contract value, including a subsequent phase, is now expected to go up to CHF 18 million, which is just over $18 million.

HPE’s Domain Expertise Makes it a Natural Choice

Per Felix Schürmann, co-director at the Blue Brain Project, “The Blue Brain Project’s scientific mission is critically dependent on our supercomputing capabilities.” And, HPE’s expertise on the matter is evident when he says, “HPE helps us to navigate the challenging technology landscape in supercomputing.”

Moreover, HPE’s focus on powering technologies to help in providing targeted treatments is expected to be accretive to the company’s growth. We note that HPE’s technology is also being used by German researchers for studying brain diseases such as Alzheimer’s.

Collaborations Enhance HPE’s Growth Prospects

We note that in April, HPE collaborated with KU Leuven, a Flemish research university to develop and deploy a new supercomputer, specifically built to run artificial intelligence (AI) workloads. The system, Genius, by building applications is expected to drive scientific breakthroughs, economic growth and innovation in Belgium.

Last month, the company collaborated with Sandia National Laboratories and the U.S. Department of Energy to build the “world's largest ARM-Based supercomputer”, Astra. The system enables National Nuclear Security Administration to address areas like national security, energy and science by improving analysis of complex, data-driven engineering and science simulations.

Rapid adoption of supercomputing systems is expected to be a tailwind for the company. Per Technavio, the global supercomputer market is anticipated to witness CAGR of around 9% during 2018-2022.

Hewlett Packard Enterprise Company Revenue (TTM)

Hewlett Packard Enterprise Company Revenue (TTM) | Hewlett Packard Enterprise Company Quote

Zacks Rank and Stocks to Consider

HPE currently has a Zacks Rank #3 (Hold).

A few-better ranked stocks in the broader technology sector are YY Inc. YY, Science Applications SAIC and Verint Systems VRNT, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for YY, Science Applications and Verint is projected to be 26.4%, 5% and 10%, respectively.

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