AI Hardware Demand Drives Surge for HPE and Arrow Electronics

Investment management firm Harbor Funds identified Hewlett Packard Enterprise and Arrow Electronics as top contributors to its Harbor Mid Cap Value Fund during the second quarter of 2026. This growth occurred amid a broader market rally where hardware investments in the artificial intelligence capital spending cycle outperformed software, leading to a 33% rise in the Information Technology sector.

Hewlett Packard Enterprise saw its stock price increase nearly 90% in the second quarter, driven by surging demand for AI servers and the integration of its Juniper Networks acquisition. The company reported record revenue and earnings per share that significantly beat market estimates. By September 4, 2026, its shares closed at $52.00, a 127.30% increase over the previous year.

Arrow Electronics also experienced substantial growth, with its stock price rising nearly 50% in the second quarter. The company reported first-quarter earnings that exceeded expectations and launched a share repurchase program to buy back nearly 10% of its outstanding shares. As of September 4, 2026, Arrow Electronics shares closed at $215.97, representing a 70.76% increase over the prior year.