Hewlett Packard Enterprise beat Wall Street revenue estimates for the second quarter and said it recorded an impairment charge of $1.36 billion in the quarter.
Shares of the server-maker (HPE) were up 1.4% in late morning trading Wednesday.
HPE has benefited from a surge in spending on advanced data center architecture, designed to support the complex processing needs of generative AI.
The boom in GenAI has bumped up demand for HPE's AI-optimized servers, which are powered by Nvidia processors and can run complex applications.
For the reported quarter, HPE posted revenue of $7.63 billion on Tuesday after the closing bell, ahead of analysts' average estimate of $7.45 billion, according to data compiled by LSEG.